Monday, July 30, 2012
Unilever, the large European food conglomerate, just sold $550 million worth of 5-year notes with a coupon of just 0.85 percent.
According to Bloomberg, this is the lowest ever borrowing cost for U.S. debt.
To put this into perspective, the U.S. government is borrowing money for 5 years with a coupon of 0.5 percent.
This is part of a major trend throughout the world of rock-bottom yields for anything that's not a European peripheral or a junk corporate borrower.
And just like that, Texas Instrument has broken a record for the lowest coupon on 3-year debt at just 0.45 percent according to Bloomberg.