Since the launch of the euro, moreover, Italy's debt managers have managed to extend the average term of its borrowing to almost seven years, locking in then-prevailing interest rates and ensuring that less of the outstanding debt is subject to abrupt rate increases.
Under the asset purchasing programme the central bank buys bonds in order to keep the long-term cost of borrowing down.
On the bond markets, the Spanish government's long-term cost of borrowing fell slightly, to an implied interest rate of just under 6% for 10-year debt.
There's not much room for complacency when the Spanish government's long term cost of borrowing is edging toward 7.3% and it has just paid more than 5% to borrow for one year.
But the cost may be largely a political one, for the coalition, rather than an economic one: there has already in recent weeks been a smallish rise in the long-term costs of borrowing for the Treasury, which may be markets discounting the ratings downgrade.
But they think higher growth is worth the long-term cost of higher borrowing - that if the government is going to be forced to borrow more anyway, it might as well choose upfront what it is going to spend that money on.
Another factor that is not well understood is that even such shorter term borrowing is just borrowing back some of the increased savings flowing into the personal accounts.
Short-term, most of its borrowing is temporary and is coming down.
Countries also are divided over the treatment of repurchase agreements, a form of short-term borrowing for dealers in government securities.
But why pass up the undeniable cost advantage of short-term borrowing?
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The transactions in question, known as "window dressing, " involve repurchase agreements, or repos, a form of short-term borrowing that allows banks to take bigger trading risks.
As we went to press, Mr Draghi was to put flesh on his pledge to limit the cost of medium-term borrowing by governments (and hence companies).
Greece, Ireland and Portugal have been effectively shut out of borrowing long term on international financial markets, which forced them to seek help from European partners and the International Monetary Fund.
All these crises are alike in that the bankers play the yield curve and push money out to doubtful borrowers in order to get maximum advantage of the spread between the cost of borrowing short term and lending long term.
Commercial paper became the rage in the 1960s as a means of borrowing short-term money and saving interest costs by bypassing the banks.
Careful debt-management strategies that avoid short-term borrowing or the bunching of maturities and hedge against interest-rate or exchange-rate swings should come high on the agenda.
Tuesday, Treasury Secretary Henry Paulson told the Chamber of Commerce that investment banks should be more closely scrutinized by the Federal Reserve (make that scrutinized at all, really) now that they enjoy the privilege of borrowing short-term funds directly from the central bank, just as commercial banks have been allowed to do for years.
Refinance any long-term debt now (without increasing the amount borrowed or adding to the term) and lower your overall cost of borrowing.
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They are particularly interested in covering the extended loan customers, who are the most at risk of being upended by short term borrowing.
Until now it has mostly repaid short-term debt, lengthening the overall maturity of its borrowing.
Italy's short-term borrowing costs rose at an auction of six-month bonds, which were sold at a gross yield of 1.24%, up from 0.73% at a similar auction a month ago.
Mortgage REITs, which use short-term debt to buy longer-term mortgage securities, also are at the greatest risk if interest rates rise because that would increase their short-term borrowing costs and cut the value of the mortgage bonds that they hold, possibly resulting in losses and reduced dividends.
Commercial paper represents 47.7% of GE Capital's short-term borrowing.
What was supposed to be a deal that brings in more jobs in the short term could potentially harm long-term job growth in Rhode Island if the cost of borrowing for schools, roads and improving infrastructure goes up.
The short-term increase in the borrowing cap is the brainchild of House Republicans, who wanted to re-sequence a series of upcoming budget battles, taking the threat of a potentially devastating government default off the table and instead setting up a clash in March over automatic across-the-board spending cuts set to strike the Pentagon and many domestic programs.
To fill their funding holes from fleeing deposits much of this borrowing has come from the Long Term Refinancing Operation or LTRO.
When you are sitting on pile of cash that earns nothing, borrowing short-term (three years is short-term) makes no economic sense.
Italy saw a sign of relief for its economy that has been flashing red on Wednesday, when an auction of its short-term Treasury-bills sold at lower borrowing costs and higher demand.
Moreover, as noted below, the precise level of long-term interest rates is not the main constraint on borrowing here.
The company was able to raise short-term paper at very low interest rates, which lowered its overall cost of borrowing.
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