By Joseph Neu
Before memories of the financial crisis fade, capital markets advisors have been trying to get treasurers to think about funding strategies in more insurance-like terms. Using the maturity of various forms of debt, they often start their funding "insurance" lesson with the fact that there is an awful lot of refinancing that’s going to be needed over the course of 2011 to 2014. Thus, companies can be proactive and manage their funding needs early, or seek to follow the herds through funding windows later (assuming they will be open wide enough for all). And, oh by the way, while spreads may still be higher than they were, key rates are at historical lows and cannot be expected
to stay that way all the way through 2014 (with economic recovery, inflation fears, and public debt overhang, etc.).