26 jun: Europa/aktier: Klædt overvejdende i rødt
27 jun: USA/aktier: Forsigtig fremfærd før eurotopmøde
26-06-2012 23:27:00

UPDATE: $8.25 Billion in Corporate Bonds Flow Into Market

Relateret indhold

--Eight companies sell $8.25 billion of high-grade bonds

--Three borrowers upsize deals, implying strong demand

--Deals getting done ahead of possible volatility and slowdown

(Updates throughout with final deal sizes and prices.)

By Patrick McGee

More than $8 billion of high-grade corporate bonds were sold Tuesday as issuers elected to sell bonds early in the week and ahead of what could be more a volatile period owing to the two-day European Union summit beginning Thursday.

Despite a weakened tone in early trading, eight companies including Comcast Corp. (CMCSA, CMCSK) and Deere & Co. (DE) took a chance at selling bonds in a market featuring near record-low yields. The bet paid off well, as conditions improved throughout the day and allowed three of the companies to increase the size of their offerings.

American International Group Inc. (AIG) even tripled the size of its deal--an add-on to an earlier, 4.875% note due in June 2022--to $750 million, indicating strong attraction to low yields and heavy demand from investors.

A broad measure of risk sentiment, Markit's CDX North America Investment Grade Index, improved 0.3% in late-afternoon trading. Earlier the index had deteriorated 0.8%, following a 3.4% weakening Monday.

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 is that 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."

Comcast led the market by deal size, selling $2.25 billion in 10-year and 30-year bonds. They yielded 3.135% and 4.655%, or spreads to Treasurys of 1.50 and 1.95 percentage points.

The deal marks its first offering in more than two years, according to Standard & Poor's LCD.

Deere, which sold $1.25 billion of 30-year bonds at one of the lowest yields on record earlier this month, priced $1.6 billion in a three-part deal featuring 22-month floating-rate notes and fixed-maturities due in three and 10.5 years. The fixed-rate notes were priced to yield 0.959% and 2.83%, respectively, or 0.55 and 1.20 percentage points more than Treasurys.

Those jumbo deals should help weekly issuance match estimates of around $15 billion. Last week, nearly $20 billion of high-grade bonds were priced according to Dealogic, 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, as market participants anticipate a holiday-induced slowdown in trading next 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."

Two other $1 billion deals to price Tuesday were from VEB Finance and Metropolitan Life Global Funding I, a unit of MetLife Inc. (MET).

Luxury goods maker LVMH Moet Hennessy Louis Vuitton SA (MC.FR, LVMUY), a rare issuer, increased the size of its five-year deal to $850 million from $500 million. The bonds were priced to yield 1.685%, or 0.95 percentage points over Treasurys.

The financing unit of global information services group Experian Plc (EXPN.LN, EXPGY) also upsized its five-year deal to $600 million from $500 million. It priced the bonds at 2.472%, or 1.75 percentage points over Treasurys.

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

(END) Dow Jones Newswires

June 26, 2012 17:27 ET (21:27 GMT)

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

Opret kommentar

Relateret debat

  • 1 uge
  • 1 måned
  • 1 År
Ingen indlæg

Fondsbørsmeddelelser

Coloplast/CEO: Har underskrevet ny VA-kontrakt på trods af fejl

16-08-2017 14:33:48
En fejl i administrationen af kontrakten med det amerikanske veteranministerium, U.S Department of Veterans Affairs, har betydet, at det danske medicoselskab Coloplast vurderer, at det skal tilbagebetale 90 mio. kr. til ministeriet.Selskabets oplyste om engangsbeløbet i regnskabet for tredje kvartal af det forskudte regnskabsår 2016/2017, der blev fremlagt onsdag ved middagstid, og her fremgik det..

Aktier/middag: Mærsk og Carlsberg deles om top og bund i grønt C20

16-08-2017 11:33:01
Med plusser til størstedelen af de danske eliteaktier ligger C20 Cap-indekset onsdag middag i positivt terræn, og med til at trække op er Mærsk-aktierne efter koncernens regnskab. Omvendt bliver Carlsberg straffet for sit.Samlet går C20 Cap-indekset frem med 0,3 pct. til 1170,82, og dermed følger det danske eliteindeks trenden i resten af Europa, hvor de fleste aktieindeks ligeledes noterer stigni..

Aktier/tendens: Regnskaber i centrum for udvikling i C20 Cap

16-08-2017 08:36:09
Der er ikke meget påvirkning eller inspiration at hente fra udlandet for de danske investorer onsdag, og dagens udvikling i C20 Cap-indekset vil sandsynligvis blive bestemt af dagens regnskaber fra nogle af indekset tunge selskaber med A.P. Møller-Mærsk i spidsen.C20 Cap-indekset lukkede tirsdag med et fald på 0,1 pct. til 1167,07.De amerikanske aktier lukkede tirsdag med små udsving tæt på nulpun..

Mest læste nyheder

  • 24 timer
  • 48 timer
  • 1 uge
1
Vestas/Sydbank: Sætter tungt aftryk på konkurrencepræget marked - NY
2
NNIT/CEO: Vi stopper ikke op og håber på Novo Nordisk
3
Spar Nord opjusterer og ændrer udbyttepolitik
4
Vestas bekræfter ordre på 424 MW i Mexico
5
Danske rederier har nået bunden - citat

Relaterede aktiekurser

Comcast Corporation 41,24 -0,6% Fald i aktiekurs
MetLife Inc 47,95 0,4% Stigning i aktiekurs
Experian PLC ORD USD0.10 1.529,00 0,9% Stigning i aktiekurs
American International G.. 62,97 -0,1% Fald i aktiekurs
Lvmh 219,10 0,9% Stigning i aktiekurs
Deere & Company 126,63 -0,4% Fald i aktiekurs

Køb- og salgsanbefalinger

  • Trend
  • Pengemaskinen

Copyright Euroinvestor A/S 2017  Disclaimer Privatlivspolitik
Aktieinformation leveres af Interactive Data.
Data er forsinket 15-20 minutter iht. de enkelte børsers regler om videredistribution.
 
17. august 2017 03:35:32
(UTC+01:00) Brussels, Copenhagen, Madrid, Paris
Version: LiveBranchBuild_20170808.1 - EUROWEB7 - 2017-08-17 03:35:32 - 2017-08-17 03:35:32 - 1 - Website: OKAY