Pfizer Prices US$5bn Bond As Corporate Debt Deluge Continues

With risk appetite generally intact, amid recent reports of progress on U.S.-China trade negotiations, as well as the Federal Reserve’s patient stance on monetary policy changes, inflows into corporate bond and equity funds continue to swell.

Analysts at Janney Montgomery highlighted that fund flows in the latest week remained concentrated in the U.S. market, as international and global debt funds recorded outflows. They added that investors are also looking at the shorter end of the curve, with almost US$7.6bn entering money market funds.

(Click on image to enlarge)

Janney Montgomery added that average absolute yields of corporate, mortgages and other risk assets have fallen in recent weeks to reflect the heightened demand.

For the week ended February 27, Thomson Reuters/Lipper U.S. Fund Flows reported a net inflow of roughly US$3.9bn into investment-grade corporate bond funds – the largest weekly inflow in over a year – while high yield funds reported net inflows of US$698m. Emerging market equity funds also saw US$95m of inflows, providing further evidence of heightened risk appetite.

Against this backdrop, the U.S. investment-grade corporate primary market is likely to continue to churn out deals, especially if market conditions continue to support the rosy risk-taking tone.

Syndicate managers generally expect a total of around US$28bn of new offerings in the week ending March 8, with nearly US$119.5bn anticipated in March. To date in 2019, a little more than US$232bn of new U.S. dollar-denominated issuance priced.

1 2 3 4
View single page >> |

The analysis in this material is provided for information only and is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this ...

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.