Last Week in the Bond Markets
I know, I know, bonds are about as exciting as watching paint dry. But, stock investors should take a peek at company debt and what they're doing with the money every now and then.
Last week over $17 billion of high quality corporate bonds were issued.
An indicator I believe is pointing to a bond market bubble continues with Becton, Dickinson (BDX). Colgate-Palmolive (CL), Mattel (MAT), and Toronto-Dominion (TD) all issuing bonds with coupon yields below their dividend yield. That means those companies could improve cash flow by borrowing and using the proceeds to buy their own stock - not necesarily a good idea, but an interesting possibility.
So far, Intel is the only company I'm aware of that issued bonds and specifically said the proceeds would be used for a stock buy back.