Corporates pre-hedge future bond sales as inflation rises

Companies are making the most of low rates while they last and hedging issuance that’s years away

Corporates-pre-hedge-to-lock-in-low-interest-rates
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Corporate borrowers are rushing to lock in record-low interest rates by pre-hedging future debt issuance – in some cases five years ahead – as surging inflation sparks concerns major central banks will soon abandon their “lower for longer” mantra.

“What investment-grade corporates are really worried about is increases in inflation impacting the market’s view of where long-term yields should be,” says Amol Dhargalkar, head of non-financial corporations at Chatham Financial, which provides risk

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