Weekly Supply & Flows Update from CreditSights
Another huge issuance week (ended November 1), with $30 billion in debt hitting the market. Highlights of the week include the $6.0 billion two-tranche deal for GMAC, which saw strong demand at a concession to the secondary market. Another notable deal in the market was the $2 billion three-tranche offering from Tenet Healthcare, which capitalized on its recent upgrades to investment grade by both Moody's and Standard & Poors. The average dealsize increased to $860 million as more jumbos came to market. The weighted average maturity also increased, to 11.8 years as issuers looked to take advantage of the decline in Treasury yields to lock in attractive all in rates. With the Treasury's decision to 'suspend' sales of 30-year bonds, there is likely to be a pickup in long dated corporate issuance as investors continue to have demand for duration.
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