Join our Larry McDonald on CNBC’s Trading Nation, this Wednesday at 2:20pm
Don’t miss our next trade idea. Get on the Bear Traps Report Today, click hereAfter 10,000 news stories lecturing us about the death of the bond market, global investors cannot get enough investment grade paper.
U.S. companies are issuing bonds at the fastest pace ever. And investors say the Federal Reserve’s next rate hike may do little to change that.
Bond Sales Nearly 20% Ahead of 2016’s Record Pace
Investment-grade firms are on track to complete the busiest first quarter for debt sales since at least 1999. Firms from Apple Inc. to Morgan Stanley have pushed new issues to more than $360 billion so far in 2017, closing in on the previous record of $381 billion from 2009, according to data compiled by Bloomberg.
Three Weeks Left
Pending tax reform legislation in Washington is incentivizing corporate bond issuers to pile into the primary (new issue) market like never before. CFOs are afraid politicians will take away interest deductibility going forward, so they’re selling next year’s paper today. The market is dramatically over supplied.
Join our Larry McDonald on CNBC’s Trading Nation, this Wednesday at 2:20pm
Don’t miss our next trade idea. Get on the Bear Traps Report Today, click here
