Xstrata Plc and Oracle Corp. led borrowers raising at least $20billion in the second-busiest day this year for U.S. corporate bondsales.

Xstrata, the world's largest exporter of coal burned by powerstations, raised $4.5 billion in four parts, while Redwood City,California-based Oracle sold $5 billion in its first offering inmore than two years, according to data compiled by Bloomberg. Salesare the highest since $26.9 billion was raised on March 5.

Borrowing costs on dollar-denominated debt are hovering atunprecedented lows, with average yields on the Bank of AmericaMerrill Lynch U.S. Corporate & High Yield Master index reaching3.6 percent today. Companies are issuing debt as opportunities onthe calendar free from election- and holiday-related disruptionsdiminish before year-end, according to Simon Mayes at BNP ParibasSA.

Issuers “have an eye on the upcoming elections and anticipate aquieter period in the election week, and the week in the lead up,”Mayes, head of the financial institutions group syndicate in NewYork, said in a telephone interview. “Leaving issuance to Decemberis not a recommended strategy in terms of running out of time andgoing into the holiday period.”

Yields on bonds from the most creditworthy to the riskiestborrowers fell to an unprecedented 3.591 percent on Oct. 16,according to the Bank of America Merrill Lynch U.S. Corporate &High Yield Master index. The extra yield investors demand to owncorporate bonds rather than government debentures fell to 222 basispoints, the lowest since April 2011.

Xstrata, the target of a takeover bid by Glencore InternationalPlc, issued $1.25 billion of 1.8 percent, three-year notes to yield140 basis points more than similar-maturity Treasuries, $1.75billion of 2.45 percent, five-year debt at a relative yield of 170basis points, $1 billion of 4 percent, 10-year securities at aspread of 220 basis points and $500 million of 5.3 percent, 30-yeardebentures at 235 basis points, Bloomberg data show. Proceeds fromthe bonds, issued by Xstrata Finance Canada Ltd., will be used torepay maturing obligations.

Oracle, the world's largest supplier of databasesoftware, issued $2.5 billion each of 1.2 percent, five-yearsecurities at a relative yield of 45 basis points and 2.5 percent,10-year debt at a spread of 68 basis points, Bloomberg datashow.

Largest Custodian

Bank of New York Mellon Corp., the world's largest custody bank,raised $1.5 billion selling $600 million of 0.7 percent, three-yearfixed-rate debt at spread of 33 basis points, $400 million ofthree-year floating-rate notes to yield 23 basis points more thanthe quarterly London interbank offered rate, and $500 million of1.3 percent securities due January 2018 at a spread of 55 basispoints, Bloomberg data show.

Morgan Stanley, the sixth-largest U.S. bank whose third- quarterresults today beat analysts' estimates, sold $2 billion of 4.875percent, 10-year subordinated securities at a spread of 310 basispoints, Bloomberg data show. The sale was its first benchmarkoffering of subordinated debt since 2004.

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