Financial Times FT.com

Cost of corporate credit set to rise

By Nicole Bullock in New York

Published: July 15 2008 22:10 | Last updated: July 15 2008 22:10

The cost of raising debt for companies is likely to increase over the coming months owing to concerns about liquidity and a lower appetite for risk, according to credit portfolio managers at large global banks and financial institutions.

The outlook for credit risk premiums, or spreads, is worse for the US than for Europe and has also deteriorated since the first quarter, according to the latest quarterly survey of members of the International Association of Credit Portfolio Managers.

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