US financials were the biggest issuers of high-grade bonds in December. They accounted for 37.3%, or $21.3 billion, of all the issues. US corporates were the second-biggest issuers. They accounted for 35.7% of all the issues. Meanwhile, Yankee bond issuers raised $11.1 billion through high-grade bonds. They accounted for 19.5% of the total issuance. Emerging market issuers issued $3.5 billion worth of high-grade bonds in December 2015.
Major issues in December
- Visa (V) is a global payments company. It issued A1/A+ rated high-grade bonds worth $16.0 billion on December 9. Visa will use the proceeds for the acquisition of Visa Europe Limited. It was the largest issue in December.
- Schlumberger (SLB) issued A2/AA- rated high-grade bonds worth $6.0 billion on December 10. It will use the net proceeds from the offering for general corporate purposes. It will use the funds to finance a portion of the consideration of Schlumberger’s acquisition of Cameron International (CAM).
- McDonald’s (MCD) is a global foodservice retailer. It issued Baa1/BBB+ rated high-grade bonds worth $6.0 billion on December 2.
- Credit Suisse Group Funding is a subsidiary of Credit Suisse AG (CS). It issued high-grade bonds worth $2.0 billion on December 7.
- Toronto-Dominion Bank (TD) is headquartered in Toronto, Canada. Along with its subsidiaries, it offers a full range of financial products and services. It issued Aa1/AA- rated high-grade bonds worth $2.0 billion on December 7.
In the next part, we’ll analyze investment-grade bond fund flows.