Deals and volumes of investment-grade corporate bonds
Investment-grade corporate bonds worth $57.1 billion were issued in the primary market in December 2015. The investment-grade corporate bond issuance fell by 46.9% from the previous month. The number of issuers fell to 55 in December from 93 in November.
In December, there weren’t any investment-grade corporate bonds issued for three consecutive weeks due to the interest rate hike, festivities, and holidays.
The American Century Diversified Bond Fund – Class A (ADFAX) fell by 1.2% in December from a month ago.
Issuance by quality and maturity
Fixed-rate issues formed 96.7% of the total issuance. There were floating-rate issues worth $1.9 billion raised in December.
Looking at the credit ratings of issues, A rated issuers were the most prolific. They accounted for 52.4%, or $29.9 billion, of the total issuance. BBB rated issuers were next. They formed 37.9% of the month’s issuance. AA rated papers formed 8.3% of the total issuance.
In terms of maturity, the largest chunk of issuance was the ten-year maturity category. It accounted for 28.3% of all the issues. It was followed by the five-year maturity category. It accounted for 22.5% of the total issuance. The three-year maturity category accounted for 21.3% of the total issuance.
The long-term maturity category, like the 30-year, accounted for 17.9% of the total issuance. Meanwhile, the greater than 30-year and perpetuals didn’t see any issuance in December.
In the next part of the series, we’ll highlight the major deals—including pricing, credit rating, and yields.