And it spreads . . .

By Megan McArdle
Another reader emails:

American Honda (the finance arm of the car company) just issued 5 and 10 year bonds similar to Catapiller.  They are rated AA, and the offering went off at 400 over.  Things are getting ridiculous.

Translation:  Honda's finance arm just had to pay an extra 4 cents on every dollar it borrows.  That's going to pass straight through to anyone who wants them to finance a car.

This article available online at:

http://www.theatlantic.com/business/archive/2008/09/and-it-spreads/4165/