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Sunday, April 14, 2013

Fed policies prompt rise in company borrowing - survey.

The Fed's easy policies have led to increased corporate borrowing, a survey of 450 CFOs indicates, with 45% of firms taking out loans because of low rates. Half of those companies are using the debt to increase capex and 25% to expand their operations, although only 10% for hiring. "Short-term positive, long-term problematic" is how Moody's describes the situation, especially if firms are borrowing more than they can handle.

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