UK Corporate Refinancing Costs Hit Record High After Rout (1)

British blue-chip companies are facing their highest bond refinancing costs on record as new Prime Minister Liz Truss’s fiscal package aimed at turbo-charging growth wreaks havoc on UK markets.

The difference in the rate investment-grade companies need to pay if they issue sterling bonds now compared with coupons on existing debt climbed to 325 basis points, Bloomberg data showed. This is the highest level since the sterling index of investment-grade corporate bonds began more than two decades ago, exceeding the previous high hit in the aftermath of the 2008 financial crisis.

At this level, companies would have to pay ...