T-Mobile kicks off $3 billion bond deal, extending a September borrowing spree by big companies

T-Mobile Inc. on Monday joined a deluge of big U.S. corporations borrowing in the bond market this September as Wall Street braces for another jumbo-sized rate hike from the Federal Reserve.

The three-part bond offering from T-Mobile US TMUS comes as new debt issuance this year in the U.S. investment-grade corporate bond market nears the $1 trillion mark, according to Goldman Sachs data. Rates volatility, sparked by the Federal Reserve and its plans to dramatically raise interest rates this year to fight high inflation, served as a key driver of the investment-grade bond market’s roughly 15% negative total returns in 2022 through August, according to Deutsche Bank data.

That was significantly less than initial price talk in the 220 basis point area, while robust demand also helped the borrower dial back borrowing costs on its 30-year and 40-year classes of bonds, according to Informa.

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

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

Wall Street's favorite value stocks include a media giant that could surge 55%This year's tumble in stocks has led many on Wall Street to look at a previously underappreciated part of the market: value.
Source: CNBC - 🏆 12. / 72 Read more »