U.S. companies from Cargill Inc. to Procter & Gamble Co. are selling bonds in Europe at the fastest pace since 2008 as they tap investor appetite for securities from borrowers outside the crisis-damaged euro region.
Euro-denominated offerings from American companies including Cincinnati-based P&G’s first deal in the currency since 2007 pushed sales to $5.7 billion last month, the busiest August in four years, data compiled by Bloomberg show. The surge brings this year’s total to $14.5 billion, the most for the period since 2010 and matching the amount for all of 2011.
The U.S. two-year interest-rate swap spread, a measure of debt market stress, increased 0.25 basis point to 16.5 basis points as of 11:20 a.m. in New York. The gauge widens when investors seek the perceived safety of government securities and narrows when they favor assets such as company debentures.
There is “no silver bullet against the crisis,” Alberto Gallo, a debt analyst at Royal Bank of Scotland Group Plc in London, wrote in a Sept. 3 research note.