A Record Boom In Corporate Debt

February 19 saw Swiss pharmaceutical giant Roche Holding sell a record US$16bn of investment-grade bonds to finance its $42.1 billion bid for full ownership of Genentech, in a move that has dramatically highlighted the rapidly improving strength of the corporate debt market and the booming demand for high-rated bonds. Indeed, coming as it did on the same day as a US$10bn sale of government-guaranteed debt by Morgan Stanley, the move contributed to a record daily debt-issuance of US$32.55bn. Roche sold six tranches, all of which were rated as Aa1 by Moody's (the second-highest level) and two steps lower at AA-

To read the full article, please choose one of the following options: