![](/cdn/assets/images/search/clock.png)
We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Name | Symbol | Market | Type |
---|---|---|---|
Inspire 500 ETF | NYSE:PTL | NYSE | Exchange Traded Fund |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 0 | - |
Three jumbo-sized high-grade bond deals are hitting the U.S. debt markets Tuesday as companies seek to participate in the record-low yield environment.
It's often said that when IBM issues bonds, others follow, knowing that Big Blue has a knack for achieving record-low yields. So perhaps it's no coincidence that within a half-hour of International Business Machines Corp. (IBM) reporting plans to issue three- and seven-year bonds Tuesday morning, Berkshire Hathaway (BRKB) and beverage company Diageo (DEO) each disclosed their own three-part debt issues.
Each is "benchmark"-sized, which typically means at least $500 million per tranche. They could be considerably larger, pending market appetite.
The flurry of jumbo deals comes at a time of record-low yields for highly-rated bonds. The widely-watched Barclays U.S. Investment-Grade Index finished last week at 3.25%, the lowest level in data going back almost four decades. On Monday it ticked up to 3.26%, the second-lowest rate on record.
When IBM last issued three-year bonds in February, it achieved an all-time low coupon of 0.55%, according to Dealogic. Those bonds last traded Monday at a spread over Treasurys of 0.37 percentage point, yielding 0.737%, according to MarketAxess.
IBM's debt is rated Aa3 by Moody's Investors Service and A-plus from Standard & Poor's and Fitch Ratings.
Berkshire and Diageo, each issuing through financing subsidiaries, are both issuing five-, 10-, and 30-year bonds. The Berkshire bonds are rated Aa2 by Moody's and AA-plus by Fitch, while Diageo's bonds are rated A3 by Moody's and A-minus by S&P and Fitch.
Berkshire is raising funds to retire up to $700 million of 4.75% coupon notes due this year and to replace $1 billion of 4% notes that matured last month.
IBM and Diageo are each borrowing for general corporate purposes. According to Standard & Poor's LCD, this is Diageo's first U.S. bond deal since 2010.
Among smaller issues, Penske Truck Leasing Co. (PTL.XX) is readying a $750 million deal of three- and five-year bonds, and Southern Co. unit Georgia Power said it would sell $500 million in a two-part deal. All five deals are expected to price Tuesday.
-By Patrick McGee, Dow Jones Newswires; 212-416-2382; patrick.mcgee@dowjones.com
1 Year Northern Lights Chart |
1 Month Northern Lights Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions