Companies worldwide are selling bonds at the second-fastest pace on record with investors seeing the debt as an alternative to traditional havens such as government securities that are now paying negative yields.
Anheuser-Busch InBev NV, the world’s biggest brewer, and Mexico City-based America Movil SAB de CV led sales this week of at least $74.2 billion, bringing this year’s total to $2.08 trillion, according to data compiled by Bloomberg. That’s second only to the $2.37 trillion issued at this point in 2009.
“For issuers these circumstances are a boon,” Marrinan said. “Near record-low Treasury yields and enormous global demand for high-quality corporate exposure make for excellent conditions to borrow.”
“People are searching for ways to find extra yields other than Treasuries,” Rob Crimmins, a portfolio manager at RS Investments in New York, which oversees $30 billion, said in a telephone interview. “The logical place to go is the corporate market.”