$49 Billion! That was the total amount of bonds sold by Verizon in the largest corporate debt offer in history. The maturities of the fixed-rate debt covered a span of maturities from three years out to thirty years. The offering also included floating rate debt. The 10-year bonds were sold at a premium of 47 basis points to what investors were looking for on comparable BBB bonds. The deal will help to finance the purchase of the 45% stake in Verizon Wireless from Vodafone. The 30-year bonds traded as high as 107.6 cents per dollar up from the price at issuance of 99.883. Year-to-date US corporate bond sales have totalled $540 billion, according to Thomson Reuters, which is a 21% increase over last year and nearly matches the $541.5 issued over the same period in 2008.
By CWAN Global Press
The Canadian Wealth Advisors Network (CWAN) was established in March of 2009 as an online forum where investment professionals share ideas and best practices that allow them to meet the growing needs of their clients. As the CWAN community grew and evolved, it was expanded to serve both advisors and investors. Garnet O. Powell, MBA, CFA is the Editor-in-Chief of the Canadian Wealth Advisors Network (CWAN) magazine. He is an investment management professional with more than 20 years of experience. linkedin.com/in/garnetpowell