real-time news and commentary for investors
Monday, Sep 30
Investment-grade corporate bonds finish record month
- Buoyed by the largest corporate bond deal ever - Verizon's $49B sale - investment-grade companies sold more debt in September than any other month in the 18 years records have been kept - $145.7B - as companies scrambled to issue bonds before any further increase in rates made borrowing more expensive.
- Interest rates fell late in September after the Fed said it would keep stimulus in place, so companies' urgency to sell bonds before rates rise may not remain quite as strong; D.C. budget wrangling also could cause companies to hold off on new bond sales until the uncertainty clears.
- Still, if rates stay relatively low and investors continue to search for yield, new corporate bond sales could hum along at a solid pace.
- ETFs: LQD, CBND, CORP, FLTR, FLRN, ITR, LWC, SCPB, VCIT, VCLT, VCSH, IGU, IGS, CSJ, QLTA, QLTB, BSCI, BSCJ, BSCK, BSCL, BSCM.