Who let the dogs out?
Companies sell record $90 bln bonds in January
NEW YORK, Jan 31 (Reuters) - Energized by the Federal
Reserve's surprise Jan. 3 interest rate cut, companies sold $90
billion of bonds in U.S. markets in January, shattering the
record $57.3 billion sold last March by 57 percent, Thomson
Financial Securities Data said Wednesday.
Companies sold $74.1 billion of investment-grade, $14.1
billion of junk and $1.75 billion of split-rated bonds in the
month. The old investment-grade monthly record was $52.9
billion, set last March. The junk monthly record, set in May
1999, is $16 billion. Last quarter, companies sold just $4.16
billion of junk bonds as credit slid and liquidity dried up.
Salomon Smith Barney, a unit of Citigroup Inc. <C.N>, was
January's top investment-grade underwriter, handling $19.3
billion of sales. Goldman Sachs & Co. <GS.N> trailed with $8.8
billion, followed by J.P. Morgan Securities Inc. <JPM.N> with
$8.1 billion, Banc of America Securities LLC <BAC.N> with $7.2
billion and Merrill Lynch & Co. <MER.N> with $6.6 billion.
Morgan Stanley Dean Witter & Co. <MWD.N> was the top junk
bond underwriter, handling $3.19 billion of sales. Trailing it
were Salomon with $2.98 billion, Goldman Sachs with $1.97
billion, Credit Suisse First Boston <CSGZn.S> with $1.41
billion and Lehman Brothers Inc. <LEH.N> with $1.35 billion.
The surge in junk issuance allows underwriters to pocket
more of the 2.5 to 3 percent fees typical of that market.
859-1662, jon.stempel@reuters.com ))
REUTERS
Rtr 17:44 01-31-01 |
