Get ready for companies to race into the bond market in September

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 46 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 97%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

Get ready: September is typically a big month for U.S. companies looking to borrow in the bond market

Once September rolls around, its go time for U.S. companies looking to borrow big in the bond market.

But for corporations, borrowing increasingly has been the lifeblood of doing businesses with the past decade seeing a record amount of debt borrowed at low rates in the high-grade bond market, partly to grow business but also to fund stock buybacks, mergers and acquisitions.The following chart shows elevated high-grade corporate bond issuance in the months of March and September over an eight-year stretch.

The Nasdaq Composite Index COMP, -0.13% was trading lower Friday, while the Dow Jones Industrial Average DJIA, +0.16% and S&P 500 index SPX, +0.06% were in positive territory and all three were on track to post a healthy weekly gain. Replacing older debt with new bonds at lower rates is one way to cut leverage, which also could help calm fears about the bulging BBB-rated bracket of high-grade bonds that are one step away from junk. Another way to shrink debt is to sell assets.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

U.S. investment-grade bond funds have received $160 billion of inflows so far this year, more than double the amount for a similar period last year However, 30% of all IG securities now bear sub-zero yields

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Month of bond market milestones - How low can you go?August has turned out to be another month of milestones for bond markets as an e...
Source: Reuters - 🏆 2. / 97 Read more »

Factbox: Month of bond market milestones - How low can you go?August has turned out to be another month of milestones for bond markets as an e...
Source: Reuters - 🏆 2. / 97 Read more »

September is the worst month for stocks — and it’s even gloomier after a downbeat AugustAugust is typically a weak month for stock market performance, and September is the only month that, on average, is worse for equity-market prices sideways r the main ways Agree. Those indexes have failed to break for several times already. And 'one day', 'everyone' agrees they are too high.
Source: MarketWatch - 🏆 3. / 97 Read more »