Corp Credit--Why Terming out debt?
Hi All, recent joiner to a credit desk here, just am coming across things day to day I feel I'm missing and was hoping someone here could explain to me in layman's terms because its not clicking: why would an issuer go out issuing longer-term debt today? Am I just overthinking it that they just won't have to repay the principal in 30 yrs vs. in 5yrs? From the trading standpoint it just seems more risky as longer end debt is more duration sensitive, but is it just that the issuer won't care about that and they're just thinking money borrowed vs. paid back in 30y vs. in 5y? What other considerations are there that issuers would think about?
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