26 jun: Den hurtigste Bentley til dato - Continental GT Speed
27 jun: IWC lancerer Big Pilot special edition i anledning af EM i fodbol..
26-06-2012 18:25:00

Six Companies Selling Bonds in Weak Market

Relateret indhold

A series of companies are taking their chances to meet investors and sell bonds near record-low yields despite another day of weak sentiment in the corporate credit markets.

A broad measure of risk sentiment, Markit's CDX North America Investment Grade Index, sank 0.8% in late-morning trading, following a 3.4% weakening Monday, as investors remain anxious ahead of the two-day European Union summit beginning Thursday.

Six borrowers including Deere & Co. (DE) and Comcast Corp. (CMCSA, CMCSK) are doing what they can to get in deals now before the summit potentially brings another downturn to the market.

Jim Probert, managing director and head of investment grade capital markets at Bank of America Merrill Lynch, said investors are getting more comfortable with volatility, enabling issuers to bring debt to the market even on days when equity markets are down sharply.

"It has evolved from perhaps three or six months ago," Probert said. "We wouldn't have recommended moving ahead on days that were down...and now we are confident moving ahead."

One reason both sides of the transaction can be confident: issuers are receiving some of the lowest borrowing costs on record, and investors are seeing good performance in the secondary market.

The Barclays investment-grade index was within 0.02 percentage points of its all-time low at 3.27% Monday, but it also returned 4.85% to date this year.

"It's close to a perfect world scenario," Probert said. "It's rare that two things line up...and both sides are taking advantage of that."

Deere, which sold $1.25 billion of 30-year bonds at one of the lowest yields on record earlier this month, is now selling a three-part deal featuring 22-month floating-rate notes, plus fixed-maturities due in three and 10.5 years.

Comcast is selling 10-year and 30-year bonds, marking its first offering in more than two years, according to Standard & Poor's LCD.

Both deals are "benchmark"-sized, which typically means at least $500 million per tranche.

Other deals appear to be smaller, unlike last week when a range of "jumbo" deals pushed weekly volume well above forecasts. Nearly $20 billion of high-grade bonds were priced last week, versus estimates of $10 billion to $15 billion.

David Trahan, head of investment-grade syndicate at Citigroup, said Monday the stars could align for a continued flood of deals issuance this week.

"This is certainly a week that the market was expecting to be active, in part because of the odd-holiday next week with July 4th falling on Wednesday," he said. "If markets stabilize, we could see a plethora of companies coming to the market."

Luxury goods maker LVMH Moet Hennessy Louis Vuitton SA (MC.FR, LVMUY), and the financing unit of global information services group Experian Plc (EXPN.LN, EXPGY), are each selling $500 million of five-year bonds.

Metropolitan Life Global Funding I, a unit of MetLife Inc. (MET), is also selling a benchmark-sized offering of three-year notes. The two-part transaction features senior unsecured notes as well as funding agreement-backed notes.

Finally, American International Group Inc. (AIG) is adding $250 million to its outstanding issuer of 4.875% coupon bonds due in June 2022.

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

(END) Dow Jones Newswires

June 26, 2012 12:25 ET (16:25 GMT)

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

Opret kommentar

Relateret debat

  • 1 uge
  • 1 måned
  • 1 År
Ingen indlæg

Fondsbørsmeddelelser

Vestas får ordre på 51 MW i Kina

15-12-2017 15:38:40
Vindmølleproducenten Vestas har hentet en ordre på 51 megawatt (MW) i Kina, fortæller selskabet i en meddelelse fredag eftermiddag.Der er tale om en bestilling af 23 V110-2,0 MW-møller, der er optimeret til en kapacitet på 2,2 MW hver.Møllerne skal opstilles i Liaoning-provinsen i det nordøstlige Kina.Ordren indeholder også en serviceaftale, fremgår det, men længden af den samt kundens og projekte..

Novo: Lægemiddelkomité anbefaler godkendelse af Ozempic i Europa - NY2

15-12-2017 13:19:21
Novo Nordisk har fået en vigtig anbefaling fra en lægemiddelkomité under de europæiske sundhedsmyndigheder, EMA, der anbefaler GLP-1-håbet Semaglutid godkendt på det europæiske marked.Semaglutid, der skal markedsføres under navnet Ozempic, skal først officielt godkendes af EMA og EU-Kommissionen, før midlet kan ryge på markedet, men en positiv anbefaling fra lægemiddelkomitéen er som oftest også l..

Aktier/middag: H+H til tops mens C20 går i rødt

15-12-2017 11:41:22
Humøret er vrissent på børserne i Europa fredag, og ved middagstid er det danske C20 Cap-indeks ingen undtagelse, da det falder 0,9 pct. til 1121,34 - især trukket ned af Novo Nordisk.Uden for eliteindekset belønnes H+H International dog pænt for et virksomhedsopkøb til 800 mio. kr., der vil løfte selskabets omsætning med en halv milliard.USA SPREDER DÅRLIG STEMNINGDen generelle nedturen følger i ..

Mest læste nyheder

  • 24 timer
  • 48 timer
  • 1 uge

Relaterede aktiekurser

American International G.. 59,39 0,0% Aktiekurs uændret
Deere & Company 150,87 0,0% Aktiekurs uændret
Comcast Corporation 39,71 0,0% Aktiekurs uændret
MetLife Inc 51,41 0,0% Aktiekurs uændret
Lvmh 245,15 0,0% Aktiekurs uændret
Experian PLC ORD USD0.10 1.601,00 0,0% Aktiekurs uændret

Køb- og salgsanbefalinger

  • Trend
  • Pengemaskinen

Copyright Euroinvestor A/S 2017  Disclaimer Privatlivspolitik
Aktieinformation leveres af Morningstar.
Data er forsinket 15-20 minutter iht. de enkelte børsers regler om videredistribution.
 
16. december 2017 21:34:36
(UTC+01:00) Brussels, Copenhagen, Madrid, Paris
Version: LiveBranchBuild_20171124.1 - EUROWEB4 - 2017-12-16 21:34:36 - 2017-12-16 21:34:36 - 1 - Website: OKAY