Why Microsoft Has Lower Borrowing Costs Than the U.S.

Core Viewpoint - There are several theories explaining why investors are willing to pay a premium for bonds issued by companies like Microsoft and Johnson & Johnson compared to U.S. Treasury bonds [1] Group 1 - The premium for corporate bonds may be attributed to perceived credit quality and stability of the issuing companies [1] - Investors might seek higher yields from corporate bonds as compensation for taking on additional risk compared to Treasuries [1] - Market dynamics, including supply and demand for corporate bonds, can influence pricing and lead to higher valuations [1]