Deals and volumes of investment-grade corporate bonds
Investment-grade corporate bonds worth $32.93 billion were issued in the primary market in the week ending November 13, 2015. Investment-grade corporate bond issuance rose 0.2% from the previous week. However, the number of issuers fell from 30 to 28 in the previous week.
Yields on investment-grade corporate bonds rose in the week ending November 13. As a result, weekly returns of the John Hancock Bond Fund Class A (JHNBX) and the Strategic Advisers Core Income Fund (FPCIX) fell by 0.06% and 0.07%, respectively.
Issuance by quality and maturity
Fixed-rate issues formed 92.5% of the total issuance last week. Floating-rate issues worth $2.5 billion were raised last week.
When we look at the credit ratings of issuers, we see that A rated issuers were the most prolific. They made up 43.4%, or $14.3 billion, of total issuance. They were followed by AA rated issuers, which formed 26.6% of the week’s issuance. BBB rated papers formed 25.2% of the total issuance.
In terms of maturity, the largest chunk of issuance, making up 33.6% of all issuance, was the five-year maturity category. It was followed by the ten-year maturity category, which commanded 28.5% of the total issuance. The three-year maturity category made up 14.9% of total issuance.
Long-term maturity categories such as 30-year and >30-year made up 16.4% and 0.5%, respectively, of the total issuance. Perpetuals did not see any issuance last week.
In the next part of the series, we’ll highlight last week’s major deals—including pricing, credit rating, and yields.