High yield stars but J&J record steals the show
It was the turn of high yield issuers to take advantage of low funding costs in the US corporate bond market this week following last week’s glut of investment grade issuance, after the Federal Reserve re-stated its commitment to low interest rates and extended its monetary stimulus measures. Top-notch credits also had their moment, though: Johnson & Johnson broke McDonald’s record for the lowest coupon ever achieved by a US corporate for a 10 year bond late on Thursday as EuroWeek went to press.
The low rates attracted cross-over credits and a flurry of high yield issuance although disappointing jobless figures released on Thursday threatened to stem the flood of high grade issuance, which totaled nearly $13bn from 22 borrowers.
"The economic story is taking its toll on the equities markets and
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