Treasury faces volatility in some funding and investment vehicles.
Capital markets issues caught treasurers both coming and going this week—literally. On the one hand, Moody’s unnerved the high-yield markets when it reported that the $1.4 billion in junk bonds coming due in the next five years could cause trouble if the economy doesn’t improve. While the investment-grade market remained strong—witness the monster $9.5 billion multi-tranche offering today by Kraft, which the food giant will use to fund its purchase of Cadbury—volatilities in the high-yield secondary market have increased since year-end.