Mish's Global Economic Trend Analysis
Please consider Bond Sales Slow to $5.3 Billion as Spreads Approach March HighsCorporate
bond sales fell to $5.3 billion this week as the yield over benchmark
rates that investors demand to own the debt approached the highest
levels of the year. Sales compare with $11.7 billion last week,
according to data compiled by Bloomberg.
Issuance slowed as the
average spread on investment-grade bonds climbed to 7 basis points shy
of its 2008 high and junk- bond spreads surpassed 800 basis points for
the first time since March.
Overall corporate sales compare with a weekly average this year of $21.2 billion.
extra yield investors demand to own investment-grade bonds rather than
U.S. Treasuries climbed 9 basis points to 297 basis points as of
yesterday, compared with 305 basis points reached on March 20,
according to Merrill Lynch & Co.'s U.S. Corporate Master index.