Companies Issue Most 30-Years Since 1995 (WSJ)

Investment-grade companies take advantage of low rates, investors’ search for yield by selling long bonds.

Investment-grade companies have sold $91.9 billion of 30-year bonds in the United States so far this year, more than have been sold in any full year since 1995, according to the Wall Street Journal. That total, which represents 166 offerings, is up 26% from the $73.2 billion sold in 145 offerings last year.

Companies enjoy low rates, and investors appreciate the yield advantage that long-term debt offers over the short end of the yield curve. Companies that have sold 30-year bonds recently include UPS, GE and Comcast. A UPS spokeswoman notes the company’s deal elicited demand seven times the size of the issue.

 

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