Sales of corporate bonds in the U.S. fell this week and relative yields narrowed as political wrangling in Washington deterred borrowers.
International Lease Finance Corp., the commercial aircraft unit of insurer American International Group Inc., and Burlington Northern Santa Fe led issuance of about $25 billion, down from $35.2 billion last week, according to data compiled by Bloomberg. Sales this year total $307 billion, below $344.9 billion sold in the similar period 2012.
Burlington, the railroad that Warren Buffett’s Berkshire Hathaway Inc. bought in 2010, sold $1.5 billion of bonds in its first offering in more than six months, Bloomberg data show. The Fort Worth, Texas-based company’s $700 million of 3 percent, 10-year notes pay a relative yield of 110 basis points and $800 million of 4.45 percent, 30-year bonds pay a spread of 133 basis points.