Liq­uid­ity Stress In­dex de­clines

The Pak Banker - - COMPANIES/BOSS -

The liq­uid­ity of spec­u­la­tive-grade bor­row­ers in the US con­tin­ued to show strength in Jan­uary as Moody's Liq­uid­i­tyStress In­dex (LSI) de­clined in the month to 3.0%, a new record low, says Moody's In­vestors Ser­vice in its Fe­bru­ary SGL Mon­i­tor. The LSI has re­mained at 3.0% through early Fe­bru­ary. The pre­vi­ous record low was 3.1%, set in July 2012. "The LSI has held in a low and tight range over the past year, stay­ing be­tween 3.0% and 4.2% as com­pa­nies have taken ad­van­tage of ac­ces­si­ble credit mar­kets and low in­ter­est rates to re­fi­nance pend­ing ma­tu­ri­ties," says John Puchalla, a Moody's Vice Pres­i­dent and Se­nior Credit Of­fi­cer. High-yield bond is­suance has con­tin­ued at a strong pace so far in 2013, Puchalla re­ports, as the com­pa­nies con­tinue to find ready mar­kets for debt re­fi­nanc­ing.

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