For the effective federal funds rate (EFFR) to work well as a monetary policy «transmission channel,» it should trigger proportional changes
in public debt markets and loans.
The borrower also issued $ 54 million in State bonds in
the public debt markets to refinance the remaining senior debt.
Corporations have historically relied on
the public debt markets as well as bank lending facilities to fund their business but have more recently begun to rely more heavily on the public markets as the banking crisis has limited bank lending.
Companies can borrow money either through
the public debt market or through private placements.
Many North American energy companies have borrowed significantly in
the public debt markets to finance their operations, and many of the high - yield bonds in this space have lost value in recent months.