100-yr Corporate Bonds plan a comeback ?
The ideas of issuing bonds far our in the curve are resurfacing as companies are considering issuing 100-Yr bonds amidst lowering interest rates and increased demand for corporate bonds.
Companies such as Norfolk Southern Corp has sold such bonds twice the past, among other companies such as Anadarko Petro Corp, Disney, Apache, Coco Cola etc.
Find the article here.
With increasing corporate bonds demand, will the markets absorb these issuances too ? If they do, investors surely expect a further fall in interest rates.
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Permalink Reply by Maulik Mody on -
WSJ reported today that Norfolk Southern Corp expanded its $300 million 6% issue of 2005 by $100 million, maturing in 2105. If investors besides insurance cos and pension funds are buying these bonds, I think they expect a further fall in interest rates..
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