Financing Costs-Loans vs Bonds
Since the beginning of 2017, direct financing costs have been on the rise. The cost of borrowing from the debt market--at least for some enterprises--has exceeded levels of benchmark interest rates for loans of the same period. The prices of indirect financing and direct financing have become inverted, and this is not the first time we have seen this phenomenon. If we exclude mortgage loans, the real cost of bank borrowings this year is still significantly higher than the interest paid on bonds. The long-term direction of bonds and loan rates are consistent. It is expected that the difference between the cost of bond and bank borrowings will return to their more established pattern over the longer term.
【CateGory Index】： F832.4;F832.51