The spigot opened this week and the debt markets groaned under a wave ofissuance, the likes of which we have not seen for many months. By Friday morning supply totaled $22 billion for the week with the vast majority ($19.6 billion) in the investment grade arena. The resurgence in risk appetite is evident in the fact that nearly all the investment grade deals were in the single-A or triple-B rating category with recently out-of-favor names such as GMAC and Household able to tap sizeable demand. It was also interesting to note that several of the issuers that participated in last week's structured Core bond deal such as Kimco Realty and General Mills this week tapped the market under their own volition. Several of the deals were reportedly sparked by reverse enquiry from investors that did not favor the structuring constraints of the Core bonds but had appetite for some of the included names given their issuing levels.
Analysis by CreditSights, Inc., an independent online credit research platform. Call (212) 340-3888 or visit www.CreditSights.com for more information.