Emerging market companies are increasing bond sales this year at the fastest pace in more than a decade while US and European corporate borrowing slumps as investors shift to debt from the fastest-growing economies.
China Development Bank said Friday it will sell at least US$400 million worth of three-year bonds on the domestic interbank market Thursday.
German government bonds advanced as a report showed European retail sales grew less than economists predicted, boosting demand for fixed income amid concern the economic recovery is floundering.
Indian government bonds fell after an unscheduled hike late Friday in both key policy rates by the central bank that took the market by surprise and dampened sentiment.
Spain successfully sold €3.5bn in bonds on Thursday in spite of warnings from one of the leading rating agencies that the country could be stripped of its triple A credit status.
U.S. corporate bond issuance, which dried up in May as the market was buffeted by Europe’s sovereign debt crisis, will soon recover as that upheaval slowly abates, Bank of America Merrill Lynch said on Monday.
Investors, spooked by the roller coaster ride in the equity markets, the “flash crash,” and sovereign debt problems overseas, are flocking to bond funds for safety and yield.
Bonuses for Wall Street’s top executives should be tied to a basket of the firm’s securities, including bonds and stocks, to align managers with all stakeholders and discourage excess leverage and risk, Harvard Law School professor Lucian Bebchuk said.
Europe’s high-yield bond market — for issuers with a poor credit rating — has virtually been shut for the last six weeks because of the continent’s debt crisis, posing a headache for those who are facing debt maturities as early as next year.
With July – the month that bond maturities are expected to peak – fast approaching, some fixed rate bond providers have upped their game in the competition through increased rates, offering higher returns for savers.
