Last Weeks Bonds: Berkshire, Homebuilders & LNG
It was fairly tame in corporate bonds last week.
I thought it was interesting that not one, not two, but three homebuilders were among the borrowers. None of them were particularly big borrowers and all were listed among the high-yield crowd. But, in these cases 'high-yield' was a coupon rate in the 5s. Consider that four or five years ago, homebuilders would have had a hard time getting anyone to lend them money at any where close to that rate.
The other borrower that stood out was Cheniere Energy Partners' (CQP) subsidiary Sabine Pass Liquefaction. That was one of the few bond issues I've seen that isn't refinancing, share buyback, acquisition or other financial engineering. Sabine Pass will be doing some real engineering and construction. A company raising capital for capital expenditures - imagine that.
Fool on! Russ