12 jun: Europa/aktier: Eftermiddag med svaj i indeksene
13 jun: Selskabernes forventninger - onsdag den 13 juni
12-06-2012 22:36:00

Bond Issuance Continues As Six Companies Sell $2.5 Billion

Relateret indhold

By Patrick McGee

Companies are continuing to bring new debt deals to the market before Greece holds parliamentary elections on June 17, an event that has the potential to hurt risk sentiment and dry up bond issuance.

Six high-grade companies are issuing more than $2.5 billion combined Tuesday, following a $6.95 billion tally on Monday. The slew of deals to start the week indicate companies are confident they can find investors and borrow at low interest rates, yet they also suggest some nervousness about selling bonds later this month, according to market participants.

Unlike Monday, when five of the deals were for $750 million or more, including a $2 billion offering from AT&T Inc. (T), most of Tuesday's deals are small. Two 10-year transactions from Brazil led the way--Banco do Brasil (BBAS3.BR, BDORY) is selling $750 million, and aerospace and defense company Embraer SA (ERJ, EMBR3.BR) is selling $500 million--along with a $400 million deal from New York-based agribusiness Bunge Ltd. (BG).

Low interest rates continue to entice a variety of borrowers into the market, while investors are feeling comfortable, thanks to a wider-than-usual risk-premium, or spread, owing in part to ultralow Treasury rates.

According to Barclays, the average corporate bond yield was 3.32% Monday, just 0.07 percentage point from the all-time low. The average spread was 2.07 points, versus an average of 1.82 points over the past two years.

The dynamic enabled Embraer to cut the offered yields on its 10-year bond to 5.15%, versus 5.375% in original pricing guidance. Banco do Brasil launched its deal at 6%, versus 6% to 6.125% at original guidance, and it found the terms favorable enough to increase the size of its deal to $750 million from an original $500 million.

Other deals included a $300 million, 10-year deal from Florida Gas Transmission Co., a $325 million, subordinate debt deal from NextEra Energy Inc. (NEE), and a $250 million, five-year offering from Sallie Mae parent SLM Corp. (SLM).

The new deals found a receptive audience despite a mixed backdrop, with Markit's CDX North America Investment Grade Index, a proxy for risk sentiment, weakening between 0.3% and 1% in afternoon trading.

MarketAxess showed actively traded financial bonds were losing value to Treasurys, but nonfinancial corporates were stable or improving. Spreads jumped 0.14 percentage point on Goldman Sachs (GS) 2015 bonds and 0.05 point on J.P. Morgan (JPM) 2022 bonds, for instance, but Deere & Co. (DE) 2022 bonds tightened 0.04 point, and the 2043 bonds from natural gas company NiSource Inc. (NI) improved 0.06 point.

Deere and NiSource were each issued in the last week. When newly issued bonds improve in the secondary market, it helps persuade more investors and issuers to take part in the primary market.

Demand for new offerings could also be seen in the $1 billion offering from Hydro-Quebec, a government-owned public utility, and the five-year, $1.25 billion covered bond deal from National Australia Bank Ltd. (NABZY, NAB.AU). Neither is classified as a corporate bond by data provider Dealogic, which tracks issuance.

Hydro-Quebec sold five-year bonds to yield 1.399%, or 0.65 percentage point over the Treasury rate, while National Australia Bank Ltd. was on track to sell its bonds at 1.0 point over an industry standard midswap price.

The covered bonds are backed by the bank as well as a pool of Australian prime residential mortgages, earning them triple-A ratings.

Write to Patrick McGee at patrick.mcgee@dowjones.com

(END) Dow Jones Newswires

June 12, 2012 16:36 ET (20:36 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

Opret kommentar

Relateret debat

  • 1 uge
  • 1 måned
  • 1 År
26 maj
GS
Kan se at DONG nu værdisættes til mellem 83 og 106 milliarder. Så nu kan vi beregne prisen på Corydo..
21
26 maj
GS
Men det rette havde jo været at splitte DONG op i dansk infrastruktur og øvrige aktiviteter, hvoreft..
4
26 maj
GS
Jeg kritiserede skam også salget af Københavns Lufthavne. Og jeg har redegjort for alternativet til ..
3
26 maj
GS
Så det at GSI var ombord 2.5-3 doblede værdien på få år. Of course not. Det er jo ikke biotek så ree..
3
26 maj
GS
Enig! GS har nok en gang orkestreret et ufatteligt stort tyveri af et skattepenge og nu denne gang i..
3
26 maj
GS
Men Corydon fik da et godt job hos nogle GS drengenes gode venner. Lidt lige som Fogh efter Danmarks..
2
26 maj
GS
Man skal ikke glemme at de nye aktionæres provenu i 2014 blev brugt til at investeringer i Dong, som..
2
26 maj
GS
Hvis de kan se værdier for 80-90 mia, vil de vel næppe give en pris som modsvarer 90-100 mia dkk.   ..
1
26 maj
GS
Ingen kan jo vide med sikkerhed hvilken betydning GSIs medejerskab har betydet. Men jeg tror bare at..
1
26 maj
GS
Undskyld Masha, men det må jeg kommentere selvom jeg ikke længere gider skrive på Euroinvestor (og l..
1

Fondsbørsmeddelelser

Nordicom sætter navn på ny investor - NY

31-05-2016 16:17:10
Ejendomsselskabet Nordicom er i fuld gang med en restrukturering af forretningen, og selskabet sætter nu navn på den nye mulige investor.Det er det svenske sels..

DFDS udnytter option og køber skib frit

31-05-2016 14:58:53
Rederiet DFDS har udnyttet en købsoption på skibet Athena Seaways, som er blevet købt fri af Grimaldi Holding.Det fremgår af en meddelelse til fondsbørsen tirsd..

Døende dansk biotekstjerne sælger de sidste projekter

31-05-2016 14:09:41
Biotekselskabet Neurosearch har tirsdag solgt de sidste rester af de lægemiddelprojekter, der i 2010 gjorde selskabet milliarder værd på børsen.Nu er planen en ..

Mest læste nyheder

  • 24 timer
  • 48 timer
  • 1 uge
1
Døende dansk biotekstjerne sælger de sidste projekter
2
Danmark: Økonomien vokser overraskende meget
3
Aktier/tendens: Positive tendenser fra Asien kan smitte af
4
Vestas-konkurrent har første overskud i fem år
5
Tirsdagens aktier: Genmab helt i front i dag og i maj

Relaterede aktiekurser

NiSource Inc (Holding Co.. 23,86 -1,1% Fald i aktiekurs
Deere & Co 82,29 2,2% Stigning i aktiekurs
SLM Corporation 6,87 1,9% Stigning i aktiekurs
NextEra Energy Inc 120,12 0,2% Stigning i aktiekurs
Goldman Sachs Group Inc 159,48 0,0% Fald i aktiekurs
NAT Bank FPO 26,67 -1,8% Fald i aktiekurs
Embraer SA 20,82 -1,2% Fald i aktiekurs
Bunge Ltd 67,07 2,0% Stigning i aktiekurs
NAT Bank FPO 29,10 0,0% Aktiekurs uændret

Køb- og salgsanbefalinger

  • Trend
  • Pengemaskinen

Copyright Euroinvestor A/S 2016  Disclaimer Privatlivspolitik
Aktieinformation leveres af Interactive Data.
Data er forsinket 15-20 minutter iht. de enkelte børsers regler om videredistribution.
 
1. juni 2016 03:44:41
(UTC+01:00) Brussels, Copenhagen, Madrid, Paris
Version: LiveBranchBuild_20160531.2 - EUROWEB3 - 2016-06-01 03:44:41 - 2016-06-01 03:44:41 - 1 - Website: OKAY

Når du besøger Euroinvestor.dk accepterer du, at der anvendes cookies, som vi og vores samarbejdspartnere benytter til funktionalitet, statistik og markedsføring. Læs mere om cookies på Euroinvestor.dk her

x