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%
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.