Rally in bank bonds may make refinancing debt easier

10/16/2008 | Bloomberg

The U.S. government's economic-rescue plan triggered a rally in bank bonds that may make it easier for financial firms to refinance tens of billions of dollars of debt that will mature through the end of 2008. After Treasury Secretary Henry Paulson announced that the government will invest $250 billion in banks, bonds of Goldman Sachs, Citigroup and Morgan Stanley soared. "The banks right now effectively are under the government," said Mark Kiesel, executive vice president at Pacific Investment Management. The U.S. "is trying to help refinancing needs in the banking sector."

View Full Article in:

Bloomberg

Published in Brief: