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rd80 (99.11)

Highlights from last week's corp bond issues

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October 08, 2012 – Comments (3)

A few of the highlights from last week's corporate bond issues.  The total for the week was $35.8 billion.  $16.4 billion of that was from companies based outside the US. 

The biggest borrower was GE with $7 billion; $5 billion of that goes to refinance higher coupon debt, the other $2 billion is for general corporate purposes.  Next was Heineken with $3.25 billion to help finance its acquisition of Asia Pacific Breweries.

Sixteen of the issues were junk bonds for a total of $8.4 billion.  A junk issue profiled in the article was Crown Castle's issue that's effectively helping fund a of cell tower deal with T-Mobile.  That coupon rate was 5.25% on 10-year paper, which doesn't seem like much of a premium over investment grade for the step down in credit quality.

I like doing this topic and would appreciate any comments on how to make it better, hate it/like it, etc.

Fool on!

Russ

Disclosure:  Long GE.  No position in any other company mentioned.

 

3 Comments – Post Your Own

#1) On October 08, 2012 at 10:37 PM, ChrisGraley (31.45) wrote:

It's a very good topic rd80.

Please keeping posting info. You got a +1 from me. I can't believe that bonds have such a low risk premium right now and suspect that our PPT may be propping the market. 

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#2) On October 08, 2012 at 11:47 PM, EnigmaDude (95.73) wrote:

I love reviewing this summary.  This site is so focused on stocks that I sometimes forget to pay attention to what bonds are doing! 

Also have to wonder if all that borrowing that GE is doing might affect their share price.  I sold off a few shares thinking it may have reached a short-term top.

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#3) On October 09, 2012 at 9:02 AM, rd80 (99.11) wrote:

Many thanks for the feedback and kind words.

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