Bond Markets Are Flooded With Deals to Fund M&A: Credit Weekly

Demand has grown so fervent for corporate bonds that investors are once again willing to finance big mergers and acquisitions — something they hesitated to do for much of last year.

In just the past two weeks, about $50 billion of bonds have been sold to help finance acquisitions and spinoffs. The deluge, which included notes tied to AbbVie Inc., Bristol Myers Squibb Co. and Cisco Systems Inc., marks a steep surge in M&A financing after the slowest year for dealmaking in a decade.

US corporate investment-grade bond sales are set to surpass $60 billion for the first time in nearly two years. Barclays Global Co-Head of Debt Capital Markets Meghan Graper and Invesco Senior Portfolio Manager Matt Brill react on “Bloomberg Real Yield.”

Source: Bloomberg

To Arvind Narayanan at Vanguard Group, there’s even more to come. Corporate ...