| Bonds Online |
 |
|
| 5/10/2013Market Performance |
| Municipal Bonds |
|---|
|
S&P National Bond Index
|
3.00% |
|
|
S&P California Bond Index
|
2.96% |
|
|
S&P New York Bond Index
|
3.13% |
|
|
S&P National 0-5 Year Municipal Bond Index
|
0.70% |
|
|
| S&P/BGCantor US Treasury Bond |
400.09 |
|
| More |
|
| Income Equities: |
|---|
| Preferred Stocks |
|---|
|
S&P U.S. Preferred Stock Index
|
848.03 |
|
|
S&P U.S. Preferred Stock Index (CAD)
|
636.26 |
|
|
S&P U.S. Preferred Stock Index (TR)
|
1,701.05 |
|
|
S&P U.S. Preferred Stock Index (TR) (CAD)
|
1,276.26 |
|
|
| REITs |
|---|
|
S&P REIT Index
|
174.07 |
|
|
S&P REIT Index (TR)
|
425.30 |
|
|
| MLPs |
|---|
|
S&P MLP Index
|
2,469.58 |
|
|
S&P MLP Index (TR)
|
5,428.50 |
|
|
See Data
|
|
|
|
 |
|
|
|
|
|
|
U.S. Corporate Bond Offerings May Slow Along With Economy: New Issue Alert |
Bloomberg - Aug. 25, 2010 - by Tim Catts
Companies are planning at least $3.5 billion of debt as weakening investor confidence in the economic recovery threatens the pace of issuance.
No junk-rated companies have sold debt in the U.S. this week, compared with $1.96 billion in the five days ended Aug. 20 and a record $14.9 billion in the week through Aug. 13, according to data compiled by Bloomberg.
High-yield, high-risk bond sales may fall if signs that the economy is slowing diminishes investors’ appetite for risky assets including corporate debt, wrote Diane Vazza, head of global fixed-income research at Standard & Poor’s in New York. Relative yields on the debt rose the most in almost two weeks after the National Association of Realtors said sales of existing homes fell the most on record in July.
“Expectations for the economy to remain weak in the second half of 2010 and through 2011 could quickly reverse investor sentiment and limit access to the bond markets and other funding sources,” Vazza wrote. “Capital is quick to climb up the credit quality ladder when uncertainty in the financial markets rises.”
The extra yield investors demand to own high-yield corporate bonds instead of Treasuries rose 11 basis points, the most since Aug. 11, to 693 basis points, according to Bank of America Merrill Lynch Index data. Absolute yields on the debt rose 3 basis points to 8.56 percent, the data show.
High-yield, high-risk debt is rated below Baa3 by Moody’s Investors Service and BBB- by S&P. A basis point is 0.01 percentage point.
Spreads Widen, Yields Fall
Investment-grade corporate bond spreads widened 2 basis points to 190 basis points, according to the Bank of America Merrill Lynch U.S. Corporate Master Index. Yields fell 6 basis points to 3.74 percent, the lowest since daily index data began in October 1986.
Aetna Inc., the third-largest health insurer after WellPoint Inc. and UnitedHealth Group Inc., sold $750 million of 10-year debt and Yum! Brands Inc., owner of Pizza Hut and Taco Bell restaurant chains, issued $350 million of notes due in 2020 in yesterday’s only corporate bond sales, Bloomberg data show.
Junk-rated U.S. companies faced $647.6 billion of debt maturing through 2013 as of Jan. 1, while investment-grade borrowers had $1.7 trillion, Vazza wrote in the report.
Sales of existing houses plummeted by a record 27 percent in July as the effects of a government tax credit waned, National Association of Realtors data showed. Purchases fell to a 3.83 million annual pace, the lowest in a decade of record- keeping.
Following is a description of at least $3.5 billion of pending sales of dollar-denominated bonds in the U.S.
Investment Grade
AON CORP., the world’s largest insurance brokerage, plans to sell as much as $1.5 billion of senior notes to help finance its acquisition of Hewitt Associates Inc., the Chicago-based company said in an Aug. 16 regulatory filing. Aon may also use proceeds to refinance Hewitt’s existing debt and to pay related expenses, it said in the filing.
DOHA BANK QSC, Qatar’s third-largest bank, may raise as much as $1 billion from bond sales, its chief executive officer said. The money is likely to be raised for five years and is meant to “fix the maturity mismatch” on the bank’s balance sheet, Raghavan Seetharaman said in a June 16 telephone interview from Doha. The bank will sell the bonds in dollars and the local riyal currency, the CEO said in a July 25 interview.
FORETHOUGHT FINANCIAL GROUP INC. plans to sell $150 million of 10-year bonds, according to a person familiar with the transaction, who declined to be identified because terms aren’t set. S&P assigned the notes a grade of BBB- in a March 24 report.
Not Rated
STERICYCLE INC. plans to issue $175 million of seven-year, 3.89 percent notes and $225 million of 10-year, 4.47 percent debt after receiving informal commitments from 22 institutional investors to buy the securities, it said in a statement distributed by Business Wire.
High Yield
UNIVERSAL HEALTH SERVICES INC., the operator of more than 100 U.S. medical facilities that’s buying Psychiatric Solutions Inc., cut its offering of senior unsecured notes to $250 million, according to a person familiar with the transaction. It increased the size of the term loans it’s seeking by $100 million, said the person, who declined to be identified because terms aren’t set. The King of Prussia, Pennsylvania-based company previously planned to issue $400 million of senior unsecured debt to help finance the acquisition, according to a filing with the Securities and Exchange Commission.
E-LAND FASHION CHINA HOLDINGS LTD, the Hong Kong-based apparel products provider, hired Morgan Stanley to help it sell $200 million of three-year bonds, according to a person familiar with the matter. The company plans to begin meeting with investors in Asia, Europe and the U.S. on July 19, said the person who declined to be identified because terms aren’t set. Moody’s Investors Service ranked the proposed notes at Ba2, citing growing personal consumption in China, E-Land Fashion’s moderate scale and significant business volatility. Proceeds will be used for mainly for capital expenditures and general corporate purposes, Moody’s said in the report.
For the complete article visit Bloomberg.com
|
|
|
|
|
|
| Partner Market Place |
|
|
|
| Stuff to look at |
Yield and Income Newsletter: A must have for income investors. subscribe NOW
S&P Commentary and Newsletters: S&P
|
|
| BondsOnline Advisor |
Income Security Recommendation January 2013 Issue.
Keep up with monthly, in-depth coverage of fixed income market strategies, commentary, and insights as seen by our sources. Sign up for the free BondsOnline Advisor now!
Unsubscribe here [+] |
|
|
|
|
