Verizon bond demand blows away expectations


Verizon Communications (VZ) has reportedly received over $90B worth of orders for bonds that it's selling in order to help pay for the $130B acquisition of Vodafone's 45% stake in Verizon Wireless.

Verizon is expected to sell $49B in bonds today, while it will also market a $12B loan.

The demand has blow away all expectations - Verizon thought it would sell $20B of paper this week, while underwriters thought it would take a year to sell the $40-50B that the carrier was looking to raise.

But investors, starved of decent yields for so long, are clamoring to participate in a deal that provides attractive returns via investment in a solid company.

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Comments (4)
  • 7footMoose
    , contributor
    Comments (2229) | Send Message
     
    The global markets are awash with cash looking for a home.
    11 Sep 2013, 06:39 AM Reply Like
  • wigit5
    , contributor
    Comments (4365) | Send Message
     
    How does a retail investor get into corporate bonds? Seems like something I should add to my holdings to diversify a bit.
    11 Sep 2013, 08:47 AM Reply Like
  • 7footMoose
    , contributor
    Comments (2229) | Send Message
     
    Call your financial advisor
    11 Sep 2013, 10:47 AM Reply Like
  • notta lackey
    , contributor
    Comments (131) | Send Message
     
    Don't, unless you buy bonds on the original issue. Bonds are sold in large blocks and they soak "odd-lotters" like retail investors. Buy a fund or an ETF. Closed end funds are especially good for bond buyers because you can almost always get them for less than asset value, subsidizing your yield and offsetting part of the management fee. However, never buy them on the initial offering as the commission price will immediately drop out of the fund after offering.
    15 Sep 2013, 02:54 PM Reply Like
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