Financial Times FT.com

Investment banking

US banks scramble to refinance maturing debt

By Francesco Guerrera and Aline van Duyn in New York

Published: August 17 2008 22:40 | Last updated: August 17 2008 22:40

Battered US financial groups will have to refinance billions of dollars in maturing debt over the coming months, a move likely to push banks’ funding costs higher and curb their profitability, say bankers and analysts.

The banks’ need to raise capital to offset mounting credit-related losses is forcing them to pay higher interest rates to entice investors.

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