Esoteric ABS — which offers corporate managers with unique asset classes non-recourse, low-cost financing — bounced back quickly.
For many investment-grade borrowers, a LIBOR floor could double the funding spread on a loan.
The impact of the inability of a borrower to take advantage of negative base rates is significant.
Floating a new bond issue is easy now, but changes taking place in the debt capital markets could make it much harder for some issuers in the years ahead.
