It’s been touch-and-go for U.S. companies looking to borrow in one of the world’s deepest financial wells in the six days since Russia launched its military assault on Ukraine.
The war also has fueled market turmoil, with oil prices topping $100 a barrel and investors piling into gold, U.S. Treasurys and other traditional haven assets as Europe faces its biggest test since World War II. Until Tuesday, it also meant a pause on U.S. corporate bond issuance. Capital One Financial Corp. COF was among the handful of companies back in the market Tuesday, with a new, $2.5 billion BBB-rated investment-grade bond deal that priced at a roughly 2.6% rate, according to a person with direct knowledge of the dealings.
Investors pegged investment-grade bond spreads moving closer to 130 basis points above Treasurys on Tuesday, but still below the roughly 135-basis-point average in the post-2008 financial-crisis period.