Corporate Debt Reaches Record High of $147.8 Billion in September (CNBC)
Led by Verizon’s largest corporate debt offering ever of $49 billion, September set a single-month record with $147.8 billion in investment grade bonds. Add to that another $46 billion in high yield debt, and you get $193.8 billion in total corporate debt offered for the month. And September is still not over. With 10-year Treasury bonds currently yielding 2.64 percent, on average, investment grade yields have been 154 basis points higher, while the average high yield spread sits at 462 basis points, according to Adrian Miller of GMP Securities. The $147.8 figure tops the previous high in investment grade debt offerings of $133.9 billion, set in May of 2008, just before the global financial crisis hit. Does this situation mean another crisis is around the corner? We hope not.
Data showing an unexpected decline in jobless claims outweighed concern about a possible government shutdown, propelling stocks to a gain for the day and breaking a five-session losing streak for the S&P 500.
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