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Bond Market: Mini Corporate Convulsion

Posted on May 20, 2008

In a late email yesterday which I regularly receive from a dealer, I am detecting the first faint signs of indigestion in the corporate bond market. The following information is based on levels which prevailed in late trading yesterday and I am guessing is still the case this morning as equity markets have a weak tone. There has been a tight link between corporate spreads and the bounce in stocks the last two months.Anyway, Pepsico brought a $1.75 billion 10 year bond to market yesterday. It priced at T+125 basis points. The issue did not tighten and was freely offered at that level against a ...

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corporate bond , markets , trading