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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: mishedlo who wrote (16131)	11/17/2004 7:16:04 PM
From: mishedlo	Read Replies (1) of 116555

Rack up another $12B in corporate bonds today $25B for the week (thru Wednesday). Investors just can not get enough of them GM bonds improve amid new offering from finance arm Wednesday, November 17, 2004 10:31:31 PM afxpress.com CHICAGO (AFX) - The corporate bond community estimated about $12 billion in new issuance on Wednesday alone from U.S. and European-based sources, which pushed the total so far this week to a robust $25 billion Among the bigger deals to price was a $1.25 billion offering from General Motors Corp.'s finance arm, GMAC GM's 8.375 percent bond due in July 2033 was the most actively traded issue in the secondary bond market for a second day, according to MarketAxess The bond was trading at a spread of 313 basis points to a Treasury bond of comparable maturity. That's tighter by 5 basis points on the day. The spread remains wider by 10 basis points on the week The spread, or difference in yield between riskier company debt and relatively lower-risk government debt, narrows when investors will accept lower yields. The spread widens when investors expect a higher payout from the company for taking on what's seen as increased risk Automaker bond spreads had widened amid expectations credit ratings could be cut GM's 7.25 percent note due in March 2011 was the second most-active issue Wednesday. It was trading at a spread of 196 basis points to a Treasury note of comparable maturity. That narrower by 5 basis points on the day and by 2 basis points on the week Among the other issuers of note, American Express brought to the block $750 million total in 2- and 3-year floating-rate notes HSBC's Household Finance division proceeded with its two-part deal. It included $1.5 billion of floating-rate notes and $1.75 billion of 5-year fixed-rate notes

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