Finally a summer week. Just $6 billion in debt came to market the week ended August 23, with virtually all of it investment grade issuance. Although it was a generally slow week, there were several notable deals, including the $1 billion 10-year for International Paper. Given the difficulties in the paper cycle, the fact that IP could place $1 billion of debt near the tights of the year indicates the depth of the bid for cyclical BBB paper. A steep yield curve has pushed investors down the credit quality spectrum and out the curve in search of yield. At the same time, the aggressive Fed action (7 cuts in 8 months) has given investors more comfort taking these credit bets.
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