CFOs indulge amid cheap debt

CFOs are taking advantage of record-low interest on their corporate debt thanks to strong demand from investors. Examples include Coca-Cola and Wal-Mart, which recently issued three-year bonds with coupons of 0.75%, and Colgate Palmolive, which offered a five-year note at just 1.375% last month. However, companies could hit a snag later when cheap debt begins to eat into pension-fund returns.

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