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GE (GE) has become the latest to take advantage of ultra-low interest rates to sell $7B worth of...

GE (GE) has become the latest to take advantage of ultra-low interest rates to sell $7B worth of bonds in the third-largest corporate-debt sale this year and the conglomerate's first since 2007. GE sold $2B in 3-year paper at 0.859% vs. 0.308% for comparable Treasurys, $3B of 10-year bonds at 2.727% vs. 1.625%, and $2B in 30-year debt at 4.158% vs. 2.821%, the WSJ reports.
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Comments (2)
  • MexCom
    , contributor
    Comments (3061) | Send Message
     
    If big business can borrow this cheaply there must be a big economic rebound coming. As much as our labor costs are higher than most countries, our low interest rates beats Europe and many other countries to produce goods at lower cost and better quality.

     

    BTW - I didn't click the link this time to only get hit with another WSJ advertisement.
    2 Oct 2012, 06:12 AM Reply Like
  • bernie 1
    , contributor
    Comments (571) | Send Message
     
    I've written before about this investment grade bond issue. I got lucky with investment grade corp.. bonds. I had all my bonds paying over 6.10% to 8 3/4 % & paying monthly. As they were all bought (except the 8 3/4 % one) at par or under, & they were going to outlive me. Well along came Dodd-Frank & the banking bonds are calling like crazy. One of my BAC bonds that was to mature 2036 was called 5 weeks ago. Now I've been told that my GE,Chase & Countrywide are all ready to be called in the next 2 weeks. They might not call them ,but will be updated every week. In looking to replace them, all that is around 4 % & any better are going for as much as 40 basis point over par. It's going to be difficult to find safety that pay's monthly on the cheap. Even preferred via Quantumonline doesn't have decent stock at par.
    2 Oct 2012, 12:04 PM Reply Like
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