Corporate bond sales in the U.S. capped the busiest November on record as issuance climbed to $45 billion this week, while relative yields narrowed as companies sought to lock in borrowing costs at almost unprecedented lows.
Costco Wholesale Corp., the largest U.S. warehouse-club chain, raised $3.5 billion in its first sale since 2007 and Burbank, California-based Walt Disney Co. issued $3 billion, leading sales that rose from $6.1 billion last week and were the busiest since $48.1 billion in the period ended Nov. 9, according to data compiled by Bloomberg. Sales of at least $165.1 billion this month topped the previous November record of $124.7 billion set in 2006, Bloomberg data show.
Issuance increased amid legislative talks on $607 billion in spending cuts and tax increases set to take effect next year. Companies that took advantage of low costs to sell debt may be seeking to avoid volatility stoked by the budget negotiations, according to Hans Mikkelsen at Bank of America Corp.
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