And, the only way to borrow long-term in a rising rate environment is to offer risk-averse investors higher coupons on bonds with extended maturities.
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At this time the company has more cash than debt, and can afford to float the risk of higher SACs while they may be necessary in the competitive environment.
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Last week, the Environment Agency and Met Office warned that this summer's unusually wet weather means there is a higher risk of flooding this winter.
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