U.S. Corporate Bonds Popular in Europe

Cargill and P&G are among the companies finding good demand for their debt in Europe.

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.

Swap Spreads

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.

P&G Bonds

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.

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