Corporate bond investors party under dark economic skies

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By Alex Radford, Jon Hay
06 Jun 2019

Ask anyone how they feel about the economic outlook, and the answer is likely to be glum. That is certainly the way bond traders and central bankers feel, to judge by the inverted US Treasury yield curve — a traditional harbinger of recession — and dovish gestures by the Fed and European Central Bank.

But this weather has proved great for corporate bond issuers. None dared issue on a rocky Monday, but Tuesday and Wednesday were packed with nine deals totalling €9.8bn and Bilfinger and Eutelsat followed on Thursday.

"It’s been a tale of two markets,” said a syndicate banker. “It's primary [bonds] ...

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