Companies flood the bond market as rate reality bites

  • 📰 axios
  • ⏱ Reading Time:
  • 40 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 63%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

The investment grade bond market saw a record February for new bond placements — despite the fact that yields were soaring.

Bond issuance slowed drastically last year.

That's because rate volatility made it difficult for bankers to place deals with investors — and companies balked at yields that were vastly higher than anything they'd seen over the last decade. February's activity shows that companies are now coming around to the idea that we may not be returning to the low-rate world of the 2010s any time soon.Just look at the 10-year Treasury, the main benchmark for corporate borrowing. It sat below 3% for only two periods in modern U.S. financial history — the post-Great Depression and post-financial crisis eras.

“The level of rates that we had from 2012 to 2022, we've never seen that before except after the Great Depression and World War II,” says Robert Tipp, chief investment strategist at PGIM Fixed Income.

 

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:

 /  🏆 302. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

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

BEVs Outsell Hybrids In Australian EV Market In FebruaryBEVs outsell HEVs in the Australian light vehicle market in February 2023 with more ships and more models on the way. zshahan3 But but but the long distances. That's not possible.
Source: cleantechnica - 🏆 565. / 51 Read more »

Saudi non-oil business activity surges in February on strong demand-PMISaudi Arabia's non-oil business sector activity soared to its highest level in eight years in February, a survey showed on Sunday, based on a strong increase in demand and an optimistic economic outlook.
Source: Reuters - 🏆 2. / 97 Read more »