Active Stocks
Fri Apr 19 2024 15:56:00
  1. Tata Steel share price
  2. 162.10 1.31%
  1. Tata Motors share price
  2. 963.20 -0.84%
  1. NTPC share price
  2. 350.90 -0.14%
  1. ITC share price
  2. 424.80 1.40%
  1. Power Grid Corporation Of India share price
  2. 281.70 0.54%
Business News/ News / US Corporate Bond Sales Hit $153 Billion in February Record
BackBack

US Corporate Bond Sales Hit $153 Billion in February Record

Blue-chip companies have sold at least $153 billion of bonds in the US in February, setting a record for the month, as companies race to seize on red-hot investor demand amid a drop in borrowing costs.

US Corporate Bond Sales Hit $153 Billion in February RecordPremium
US Corporate Bond Sales Hit $153 Billion in February Record

(Bloomberg) -- Blue-chip companies have sold at least $153 billion of bonds in the US in February, setting a record for the month, as companies race to seize on red-hot investor demand amid a drop in borrowing costs. 

The sales topped the prior record for February of $150.9 billion, set last year, according to data compiled by Bloomberg News. The record comes on the heels of the busiest week in nearly two years, driven in part by a deluge of bonds sold to fund mergers and acquisitions. And dealers say more bond sales are on the way. 

“The market is going to continue to be active," Meghan Graper, global co-head of debt capital markets at Barclays Plc, said in a phone interview last week. “I don’t see any signs of this supply wave abating."

Read More: Bond Markets Are Flooded With Deals to Fund M&A: Credit Weekly

Eighteen companies are tapping the market on Monday, including Honeywell International Inc., NatWest Group Plc and KeyCorp. Although this month is the busiest February on record, it nevertheless falls short of the most active month for sales set in April 2020, when companies issued $285 billion of bonds.

February’s issuance has gotten a boost from buyout funding. In just the past two weeks, about $50 billion of notes have been sold to help finance acquisitions and spinoffs, including offerings from AbbVie Inc., Bristol Myers Squibb Co. and Cisco Systems Inc. 

Seemingly insatiable investor demand is making this month particularly busy. For money managers, it’s an opportunity to snap up notes with elevated yields before the Federal Reserve can pull interest rates lower. 

Not only are investors loading up on bonds at frenzied levels, borrowing costs have ticked lower from an October peak. The average spread for high-grade bonds traded at the lowest level since November 2021 last week despite the gush of supply. 

Syndicates are forecasting about $35 billion in fresh bond sales in the coming week.

--With assistance from Andrew Kostic.

More stories like this are available on bloomberg.com

©2024 Bloomberg L.P.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 27 Feb 2024, 12:21 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App