Rising Corporate Borrowing Costs & CRE Pressure Signal Broad Market Headwinds

Investing.com -- A sharp sell-off in US government bonds is forcing American companies to change their borrowing plans as costs climb to the highest levels since May 2020.

Borrowing costs for companies with the lowest credit ratings reached 17% this month. The rise follows Treasury yields climbing to multiyear highs, with investors demanding higher compensation for lending to businesses with weaker credit.

The risk premium for companies rated triple C or lower has increased to 12 percentage po

Investing.com -- Commercial real estate buyers are increasingly threatening to abandon recent transactions unless sellers provide better terms, as rising interest rates reshape deal economics.

Investors who agreed to purchase prices earlier this year when financing was less expensive are now seeking price cuts or other concessions before closing. The pressure on deals began when bond yields started to rise in late summer and increased last month after the Federal Reserve raised its benchmark ra