IFR Senior Strategist
Telecom giant Verizon demonstrated its enormous appeal with investors on Monday by attracting more than US$20bn of orders for a five-part US$4.5bn offering, its biggest in the US dollar market since its US$49bn record-breaker last September.
Verizon Communications and Petrobras led a group of nine issuers to the US high-grade bond market on Monday, raising a combined US$19.925bn and setting a new daily supply record for 2014.
Investors have been put on high alert regarding the need for covenant protection in investment-grade corporate bonds, after being rattled by last week’s US$9.4bn LBO of US grocer Safeway and last month’s scare when
- Safeway LBO to be backed by US$7.6bn in debt
- Another blockbuster day for US high-grade bonds
- More than US$19bn prices in searing US high-grade market
- Six issuers raise US$5.2bn in strong US high-grade market
- Possible SEC inquiry raises age-old bonds question
- Investors resigned to funding buybacks
- Triple B rated corporates hog US high-grade limelight