Wondering why the borrowing rate contrast to the rising trend of interest rate.
The 7/28 risk news of GARP would give you an answer.
In case the risk of copyright breaking, I attached part of the article in the next paragraph. If you are interested to see the whole context, you may hyperlink to the URL attached to the end of this page.
Alan Greenspan has always favored derivatives since they provide capital to help companies avert a credit crunch and reduce risks by making financial markets resilient to shocks. At a time when oil prices are above $70 a barrel and more than two dozen central banks have raised interest rates since May, derivatives are allowing companies to borrow a record $607 billion and obtain relatively cheap financing.
By bundling more than 10 percent of that lending into so-called collateralized debt obligations (CDOs), bankers are able to provide more cash to companies.
Eastman Kodak was able to borrow even after Moody's lowered its ratings three times since the beginning of 2005 in part because its debt and credit-default swaps are contained in more than 150 CDOs.
http://www.garp.com/risknews/newsfeed.asp?Category=6&MyFile=2006-07-28-13253.html
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