Sales of U.S. corporate bonds plummeted 79 percent this week as borrowers stood on the sidelines with investment-grade buyers poised for their first monthly losses since March.
A $1.1 billion offering of perpetual preferred shares by JPMorgan Chase & Co., the largest U.S. lender by assets, and a similarly sized issue of 30-year bonds by Illinois Tool Works Inc. led $7.5 billion of offerings, according to data compiled by Bloomberg. That compares with $35.5 billion last week and $7.1 billion in the corresponding period last year.
"It's a dramatic slowdown versus the last couple of weeks," Simon Mayes, head of the financial institutions group syndicate at BNP Paribas SA in New York, said in a telephone interview. "It's been a much busier August than previous Augusts, but it was very much concentrated in the first couple of weeks."
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
