Search

The article reports developments in the U.S. debt market as of mid-December 1974. It cites the growing complexities in the sector, citing as example the issue of whether to treat a 25-year bonds, a 60-day bank loan and a 90-day note or commercial paper as long-term debt or current liabilities. The opinions of Arthur Andersen & Co.'s Robert May and AT&T's Warren W. Brown on the developments are also cited.

The article offers information on the stringent borrowing conditions for corporates due to government deficits in the U.S. It states that treasury cash now needs five billion dollars more to set the credit market. According to Henry Kaufman the yields on one-year Treasury bills has risen 190 basis points in less than two months. It mentions that the corporate and government bonds have faced less setbacks.

The article presents a study on the economic data of the Corporate Bond Credit in the U.S. According to the author, movements in the corporate bond spreads are important to many investors and potentially informative forward-looking metrics of market sentiment. The studies reviewed show that more than half of the variation in corporate bond credit spreads is not related to the financial health of the issuing firm, but rather reflects effects such as compensation for liquidity risk.

The article reports on the appeal of Spanish and Portuguese corporate bonds to investors in January 2011 amid the credit problems facing their sovereigns. Deutsche Bank corporate syndicate head François Bleines noted that demand for corporate bonds has illustrated the openness of the market for them. The new issues have benefited from improved sentiment towards peripheral eurozone credits after successful auctions. Also noted is the role of spreads in the strength of investors' response.

The article reports that corporate benchmark bond issuance in the European market for 2006 has ended with Wal-Mart and Telefónica purchasing large well absorbed issues. The reception on the deals reflected the good tone set in the corporate market for most of the year and continued to highlight investors' appetite for credit. Very little time was wasted between announcing the deal and pricing and the bonds were priced at the tight end of the 105 basis point to 110 basis point over Gilts guidance.

The article focuses on the disparity between municipal and corporate credit ratings in the U.S. It is inferred that for decades, market participants have simply accepted the gap. However, some investors are calling for a way to address the issue. Other factors discussed within the municipal bond market include hedge funds, arbitrage accounts and foreign investors.

The recent spate of bond issuance may not last long as companies have prefunded much of their needs. That will make it even harder on yield-hungry investors. [ABSTRACT FROM AUTHOR]

The article discusses European corporations which are choosing to market corporate debt and high-yield corporate bonds in the U.S. due to the impact on Europe's credit market of the financial crisis caused by the public debts of countries of the euro area monetary union. Companies considered include Belgian firm Taminco Global Chemical, cell phone services firm Polkomtel and German cable television company Kabel Deutschland.