Monday, July 21, 2008

Mish: Corporate Bond Sales Collapse

Mish's Global Economic Trend Analysis
Please consider Bond Sales Slow to $5.3 Billion as Spreads Approach March Highs
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.

1 comment:

Anonymous said...

If you are in to bond investment make sure you know your bonds right because any type of bond not suit you if you want to invest in bonds.