Mega-mashup: Discovery clears $30 billion bond to finance WarnerMedia deal, a bullish sign for a rattled market

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Investors pile into Discovery's $30 billion corporate bond deal on Wednesday to help fund its mashup with AT&T's WarnerMedia. The deal is tied for the...

Investors piled into Discovery Inc.’s DISCA $30 billion U.S. investment-grade corporate bond deal on Wednesday to finance its mashup with AT&T’s T WarnerMedia, a bullish sign for markets rattled by Russia’s invasion of Ukraine.Investors piled into Discovery Inc.’s DISCA $30 billion U.S. investment-grade corporate bond deal on Wednesday to finance its mashup with AT&T’s T WarnerMedia, a bullish sign for markets rattled by Russia’s invasion of Ukraine.

Goldman Sachs pegged total returns for the U.S. investment-grade bond market at minus-5.9% on the year, through last week, versus negative-4.2% for the U.S. high-yield bond sector. A tie for 4th-largest debt deal Verizon Communications Inc. VZ still holds the top spot for the largest U.S. investment-grade bond deal, with its nearly $50 billion financing in 2013 on the heels of the “taper tantrum” sparked by the Federal Reserve’s plans to start shrinking its balance sheet in the wake of the 2008 global financial crisis.

 

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