uploads///US Investment Grade Bond Market Issuance

Investment-Grade Corporate Bond Issuance Fell in November

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Dec. 29 2015, Updated 10:51 a.m. ET

Deals and volumes of investment-grade corporate bonds

Investment-grade corporate bonds worth $107.53 billion were issued in the primary market in November 2015. Investment-grade corporate bond issuance fell 18.9% from the previous month. However, the number of issuers rose to 93 in November from 86 in October.

From October 30 to November 30, the American Century Diversified Bond Fund A Class (ADFAX) fell 0.5%

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Major issuers

Halliburton Company (HAL), Lockheed Martin Corporation (LMT), AstraZeneca (AZN), Chevron Corporation (CVX), and Shell International Finance—a wholly owned subsidiary of Royal Dutch Shell (RDS.A)—were among the biggest issuers of investment-grade bonds in November 2015.

Issuance by quality and maturity

Fixed-rate issues made up 93.6% of the total issuance in November. Floating-rate issues worth $6.89 billion were raised in November.

In terms of credit rating, BBB rated issuers were the most prolific. They accounted for 36.8%, or $39.5 billion, of total issuance. They were followed by A rated issuers, which formed 33.9% of the month’s issuance. AA rated papers formed 26.9% of the total issuance.

In terms of maturity, the largest chunk of issuance, making up 31.8% of all issues, 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 13.4% of the total issuance.

Long-term maturity categories such as the 30-year and the >30-year categories made up 15.6% and 0.1%, respectively, of the total issuance. Perpetuals made up 2.1% of the total issuance in November.

In the next part of this series, we’ll highlight the major deals—including pricing, credit rating, and yields.

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