Another Busy Day In High-Grade Bond Market, $10 Billion Expected
March 09 2010 - 9:38AM
Dow Jones News
The investment-grade corporate bond market is busy again on
Tuesday.
After $12 billion in new deals on Monday, another $10 billion
worth of deals may hit the market.
Already, Swiss pharmaceutical giant Novartis AG (NVS) is in the
market with a $4 billion three-part bond. Other issuers include
Anadarko Petroleum Corp. (APC), with a $750 million 30-year note;
TransAlta Corp. (TAC, TA.T), with a $300 million 30-year bond; and
Royal Bank of Scotland Group PLC (RBS, RBS.LN), with a benchmark
five-year note.
Susquehanna Capital and ProLogis (PLD) are also said to be
tapping the market.
"The reason is straightforward--there is a measured response to
the calm in the market relating back to concerns over Greece," said
Scott MacDonald, director of research at Aladdin Capital Holdings
in Stamford, Conn. "There is a cautious perception that sovereign
risk has been somewhat reduced and this gives investors a chance to
return to the market."
The tone in the high-grade market is "good," said Guy LeBas,
chief fixed-income strategist at Janney Capital Markets in
Philadelphia.
He pointed out that deals sold on Monday have also tightened in
the secondary market.
For instance, DirecTV Group Inc. (DTV), which sold a $3 billion,
three-part deal is seeing the five-year bond perform really well,
he said.
"The deal sold at tight spreads to begin with," he said.
-By Anusha Shrivastava, Dow Jones Newswires; 212-416-2227;
anusha.shrivastava@dowjones.com
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