The reverse-sovereign-debt-crisis hits businesses, too

Now Unilever and Texas Instruments are the new safe havens.

It has long been clear that the world is experiencing, in the words of Business Insider's Joe Weisenthal, "the opposite of a sovereign debt crisis".

Governments, seen as one of the last safe havens for money in the world, have experienced collapsing bond yields, leading them, in many cases, to be paid to borrow money. This is partly borne out of fear of another banking crisis, but it's also due to a complete failure on the part of businesses to actually find anything to do with their record cash hauls. As tech investor Peter Thiel put it in a conversation with Google's Eric Schmidt:

Google is a great company. It has 30,000 people, or 20,000, whatever the number is. They have pretty safe jobs. On the other hand, Google also has 30, 40, 50 billion in cash. It has no idea how to invest that money in technology effectively. So, it prefers getting zero percent interest from Mr. Bernanke, effectively the cash sort of gets burned away over time through inflation, because there are no ideas that Google has how to spend money.

There was always going to be a limit to even what these risk-fearing companies were willing to accept when it came to negative yields, however, and the question was what would happen when they hit that floor.

Now we have our answer. Joe Weisenthal:

Unilever, the large European food conglomerate, just sold $550 million worth of 5-year notes with a coupon of just 0.85 percent. According to Bloomberg, this is the lowest ever borrowing cost for U.S. debt. . .

And just like that, Texas Instrument has broken a record for the lowest coupon on 3-year debt at just 0.45 percent according to Bloomberg.

When sovereign debt gets too expensive, then corporations the size of sovereigns become the new safe haven. Where will it end?

This chart, from the St Louis Federal Reserve, shows the average yield on Aaa rated corporate bonds.

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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How Theresa May is trying to trap her opponents over Brexit

An amendment calling on MPs to "respect" the referendum outcome is ammunition for the battles to come. 

Theresa May is making a habit of avoiding unnecessary defeats. In the Richmond Park by-election, where the Liberal Democrats triumphed, the Conservatives chose not to stand a candidate. In parliament, they today accepted a Labour motion calling on the government to publish a "plan for leaving the EU" before Article 50 is triggered. The Tories gave way after as many as 40 of their number threatened to vote with the opposition tomorrow. Labour's motion has no legal standing but May has avoided a symbolic defeat.

She has also done so at little cost. Labour's motion is sufficiently vague to allow the government to avoid publishing a full plan (and nothing close to a White Paper). Significantly, the Tories added an amendment stating that "this House will respect the wishes of the United Kingdom as expressed in the referendum on 23 June; and further calls on the Government to invoke Article 50 by 31 March 2017". 

For No.10, this is ammunition for the battles to come. If, as expected, the Supreme Court rules that parliament must vote on whether to trigger Article 50, Labour and others will table amendments to the resulting bill. Among other things, these would call for the government to seek full access to the single market. May, who has pledged to control EU immigration, has so far avoided this pledge. And with good reason. At the Christian Democrat conference in Germany today, Angela Merkel restated what has long been Europe's position: "We will not allow any cherry picking. The four basic freedoms must be safeguarded - freedom of movement for people, goods, services and financial market products. Only then can there be access to the single market."

There is no parliamentary majority for blocking Brexit (MPs will vote for Article 50 if the amendments fall). But there is one for single market membership. Remain supporters insist that the 23 June result imposed no conditions. But May, and most Leavers, assert that free movement must be controlled (as the Out campaign promised). 

At the moment of confrontation, the Conservatives will argue that respecting the result means not binding their hands. When MPs argue otherwise, expect them to point to tomorrow's vote. One senior Labour MP confessed that he would not vote for single market membership if it was framed as "disrespecting Brexit". The question for May is how many will prove more obstructive. 

George Eaton is political editor of the New Statesman.