Borrowing Costs for Riskiest US Companies Surge to 17%

Borrowing costs for America's riskiest companies have climbed to roughly 17%, the highest level since the COVID era, as the Treasury selloff spreads through corporate credit markets.
The 10-year Treasury yield recently reached its highest level since 2002, while Bank of America cut its forecast for investment-grade bond issuance this month to $110 billion from roughly $160 billion. Paramount's $52 billion bond sale tied to its Warner Bros deal also sold off shortly after launch.
The refinancing challenge is significant: a record $1.45 trillion of US investment-grade debt is due between 2026 and 2030, according to Moody's. Unlike the COVID period, when the Fed pushed rates near zero, markets are currently pricing additional rate hikes through early 2028.