News Formal

Firms Pile Into Bond Market in Busiest Day on Record

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 37 sec. here
  • 10 min. at publisher
  • 📊 Quality Score:
  • News: 46%
  • Publisher: 50%

Bonds News

Business,Elections,General

A record number of blue-chip firms are swarming the corporate bond market Tuesday morning, taking advantage of cheaper borrowing costs as they look to issue debt ahead of the US presidential election.

Kurt Reiman, head of Fixed Income Americas at UBS Global Wealth Management, joins BNN Bloomberg to discuss the outlook for bonds amid rate cut bets.

-- Ford Motor Credit Co. and Fifth Third Bancorp are among 29 companies tapping the bond market, the busiest single sales day for the market on record, according to data compiled by Bloomberg. Corporations are expected to borrow about $125 billion of US high-grade bonds in September. The issuance deluge comes as corporate finance chiefs aim to lock in debt while risk premiums are low. The average spread on US high-grade firms traded at 93 basis points Friday, the lowest since July 31. Average all-in yields have fallen below 5%, making borrowing more attractive.

The post-Labor Day Tuesday last year was the investment-grade market’s busiest session of 2023, with $36.2 billion of debt priced by 20 firms.

 

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

 /  🏆 83. in US

United States United States Latest News, United States United States Headlines

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

Posthaste: Why it might be time to pile back into Canadian stocksTSX could beat S&P 500 this year as this indicator turns positive for first time in 18 months
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

Shunning home markets, South Korean retailers pile-up on US stocksSouth Korea's mom-and-pop investors are defying last week's global financial markets rout by pouring even more funds into U.S. stocks, a years-long trend...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »