Corporate debt syndicates are selling debt at a record pace, but rising interest rates could significantly reduce the level of investment-grade and below investment-grade debt issued in 1993, a Moody's Investor Service economist says.

John Lonski, a senior economist at the rating agency, said the history of corporate bond issuance portends a rather dramatic downturn in the level of bonds sold by corporations in the debt market. As a result, Mr. Lonski noted, corporations may reduce bonding "somewhere in the double-digits, maybe 10% to 15%."

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