Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

Bond Flood Continues As Companies, Including Apple, Sell $56 Billion In Debt In Two Days

Courtesy of ZeroHedge View original post here.

Yesterday, we first reported that as I-bankers and corporate treasurers returned from vacation only to find record low bond yields, there was a veritable stampede to the corporate bond market, as a record 20 issuers sold over $26 billion in "cheap debt" on the first business day of September. The motive behind this scramble to access the market: according to BofA, it wasn't to add incremental leverage, such as prefunding buybacks or M&A, but rather to refinance existing debt into cheaper coupons and longer maturities.

Whetever the reason, after yesterday's whopper of a new issuance day, on Wednesday new investment grade issuance accelerated even more, rising to $28.8bn across 15 deals today, bringing the total for the two days of the week to a whopping $54.3 billion, as refinancing trades continued to dominate with $21.1bn of today's issuance partially towards commercial paper, credit revolver, term loan, short and long-term debt repayments, according to BofA's Hans Mikkelsen.

Furthermore, as we pointed out late on Wednesday, one company that will not be refinancing but certainly prefunding more buybacks…

… was Apple, which surprised the market by issuing $7 billion in a 5-part deal including a 30Y tranche, despite being the most cash rich company in the country, and no longer having its offshore cash inaccessible for domestic purposes following Trump's tax reform.

Furthermore, as BofA notes, following two very busy days in the new issue market, dealer inventories rose by about $1.5bn on Thursday as buyer indigestion set in.  And in line with this, one reason for today's blow out in Treasury yields could well be delayed rate locks, as dealers scramble to hedge rate risk by shorting tens of billions in matched maturity Treasuries in line with this week's bond avalanche.

Will the bond flood slow? If prior September seasonals are indication, after a deluge of new paper in the first 2-3 days of the month, the remainder of September should resort back to normal.


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!