More New Records in the Bond Market
Last week saw new record low corporate bond yields for 3-, 10- and 30-year maturities along with a record US $7 billion bond sale from an emerging market issuer.
One issue that got my attention was Praxair. Part of the proceeds will be used for a share buyback. Gutsy move to buy back shares with borrowed money and I plan on taking a closer look in the near future.
I continue to think bonds look bubbly, but have been early/wrong on the call so far. The problem with calling bubbles is even if you eventually turn out to be right, the bubble can keep inflating for a long time. Or, I could just be wrong.
What's your call on bonds in general? Bubble or good deal?