Coverage ratios hit their lowest since the first quarter of 2021, when companies in many sectors struggled with pandemic-related supply cost increases and weak demand. Median year-over-year earnings growth jumped 4.2% in the third quarter, from 0.6% in the second quarter, according to BofA Global. The median cost of debt increased to 3.77% in the third quarter from the second quarter - its highest since the fourth quarter of 2018. Companies' gross debt was little changed, but net debt growth turned negative for the first time since the third quarter of 2021. "(Investment-grade) issuers continued to manage their balance sheets conservatively in 3Q," wrote Yuri Seliger, credit strategist at BofA Global.

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Persons: Carlo Allegri, Yuri Seliger, Matt Tracy, Chizu Organizations: New York Stock, REUTERS, BofA Global Research, BofA Global, Companies, BofA, Thomson Locations: Manhattan, New York City , New York, U.S, 11.24x