Deals and volumes
High-grade bond issuance rose last week as the foreign money kept flowing in the US bond market. Investment-grade corporate bonds worth $32.7 billion were issued in the primary market in the week to July 29, 2016. High-grade issuance stood at $30.3 billion in the previous week. The number of issuers jumped from 12 in the previous week to 22 in the week ending July 29.
Issuance by quality and maturity
Fixed-rate issues formed 93.6% of the total issuance, while floating-rate issues worth $2.0 billion were issued last week.
Looking at the credit ratings of issues, BBB rated issuers were the most prolific. They made up 45.9%, or $15.0 billion, of the total issuance. They were followed by AA rated issuers—36.1% of the week’s issuance. Meanwhile, A rated papers formed 12.8% of the total issuance.
In terms of maturity, the three-year and ten-year maturity categories commanded the largest chunk of issuance—28.1% each of all the issues. It was followed by the five-year maturity category—20.9% of the total issuance.
The long-term maturity category such as the 30-year made up 16.4% of the total issuance. Meanwhile, the greater than 30-year category didn’t see any issuance last week. The perpetual category made up 4.9% of the total issuance.
In the next part of the series, we’ll highlight the major deals—including pricing, credit rating, and yields.