Buyers Stampede Into Jefferson County Deal Dangling 4.5% Yield

Investors snapped up $2.2 billion of bonds sold by once-bankrupt Jefferson County, Alabama, enticed by a turnaround story and the chance to buy higher-yielding securities while they still can.

The offering met with about 11 times’ more demand than available debt, attracting $26.5 billion in orders, according to Helen Hays, a spokesperson for the county. The BBB+ rated bonds for the county’s sewer system will refinance securities sold in 2013 as part of its plan to emerge from bankruptcy.

The strong investor appetite meant that the bonds were ultimately priced at lower yields than what was previously marketed to investors. ...