Jan 11, 2011
CREDIT BUBBLE BULLETIN
Just the facts
Commentary and weekly watch by Doug Noland
January 7 – Bloomberg (Tim Catts and Sapna Maheshwari): “Company bond sales in the U.S. reached a record this week and relative yields on investment- grade debt shrank to the narrowest since May … Issuance soared to $48.5 billion, eclipsing the $46.9 billion raised in the week ended May 8, 2009 … Appetite for corporate debt is growing after annual sales topped $1 trillion for the second consecutive year … ”
Investment grade issuers included GE Capital $6.0bn, Schlumberger $1.6bn, Toyota Motor Credit $1.6bn, Berkshire Hathaway $1.5bn, Met Life Global $1.5bn, Enterprise Products $1.5bn, Buckeye Partners $650 million, Plains All America Pipeline $600 million, Allegheny Technologies $500 million, Dr. Pepper Snapple $500 million, Healthcare Services $500 million, Tyco $500 million, Metlife $500 million, ERAC Finance $500 million, Amerigas $470 million, and Centerpoint Energy Resources $300 million.
Junk bond funds saw inflows of $743 million (from Lipper). A light week of junk issuance included CCO Holdings $1.1bn and Regal Entertainment $425 million.
Convertible debt issuers included WebMD Health Group $400 million.
International dollar debt issuers included Rabobank $2.75bn, Barclays Bank $2.0bn, Royal Bank of Scotland $2.0bn, Bank Nederlandse Gemeenten $2.0bn, Network Rail Infrastructure $1.5bn, Banco Bradesco $1.6bn, Bank Nova Scotia $1.25bn, Japan Municipal $1.0bn, Turkey $1.0bn, Australia New Zealand Bank $3.0bn, Macquarie Group $750 million, Sumitomo Mitsui Banking $1.5bn, BNP Paribas $1.0bn, Cemex $1.0bn, Bancolombia $520 million, Orix $400 million, and China South City $250 million