Tuesday, May 5, 2015

U.S companies have issued a record $39B of bonds in 2015

U.S. companies have issued a record $39B of bonds in 2015 that mature in more than three decades, more than five times the amount sold in the same period last year, according to data compiled by Bloomberg. Oracle  joined the fold this past Tuesday, selling $1.25B of securities due in 2055. Another notable is Microsoft , which sold its first 40-year bond in February. Treasurers are embracing what may be their last opportunity to lock in cheap long-term funding costs before the Fed raises rates, while investors are snapping up the longer-dated securities because they offer a higher yield over shorter-term debt.