Financial Times FT.com

Premiums on corporate bond issuers at new peaks

By Michael Mackenzie and Nicole Bullock

Published: August 26 2008 20:17 | Last updated: August 26 2008 20:17

The US corporate bond market has hit a new milestone as the credit crunch spreads the pain across the economy.

By various measures, the premiums demanded by investors to take on the additional risk of lending to an investment-grade company rather than the US Treasury have reached their highest levels ever, surpassing even the peak scaled in March when the collapse of Bear Stearns stoked the fear of a systemic financial crisis.

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