Description:  Corporate borrowing costs are rising at the fastest pace in more than two months on concern that worsening government finances will slow the global economy and make it harder for companies to meet debt payments.

Source: Bloomberg.com

Date: 02/08/2010

Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=auWwLKPsLRFM

Questions for discussion:

• Summarize the report and the impact this trend will have on corporate debt financing. 
• How can finance managers and investors be expected to respond?