Focus: Corporate debt and negative interest rates

Focus: Corporate debt and negative interest rates

It also indicates that economies which rely on services most may have a slower path to recovery.. Negative rates are particularly challenging in countries where banks constitute the major monetary transmission mechanism, because they undermine the traditional banking business model.. Negative interest rates come in handy for highly leveraged governments and companies.. There is also the argument supported by US president Donald Trump that negative interest rates help exports by lowering currency exchange rates.. We have seen companies issuing both investment grade and high yield debt.. The rationale went beyond a commercial argument of refinancing debt at lower interest rates.. The Fed has even ventured into junk bonds, if they are issued by so called fallen angels (companies that were investment grade before the pandemic).. The German government and Lufthansa are said to be close to agreeing a €9 billion ($9.9 billion) rescue package for Lufthansa, securing the German government 25 percent of equity plus one share, giving the government a controlling minority.. LIVE: Coronavirus pandemic hits major economies as infection cases rise further /node/1678216/middle-east. 05:11 - Tax revenues of the German government and the 16 federal states declined by 23.5 percent in April from a year earlier to