sharon sanders
Editor-in-Chief & President
Freddie Mac, Roche sell record bond issues
Wed Feb 18, 2009 10:43pm GMT
By Dena Aubin and Lynn Adler
NEW YORK, Feb 18 (Reuters) - Borrowers including Freddie Mac and Swiss drugmaker Roche (ROG.VX: Quote, Profile, Research) tapped the U.S. debt market for more than $27 billion in bonds on Wednesday as a search for yield drew investors to the highly rated deals.
Both the Freddie Mac and Roche deals were records for the U.S. market and indicate bond investors are reaching beyond the safety of Treasuries as credit markets begin to thaw.
Freddie Mac (FRE.N: Quote, Profile, Research) (FRE.P: Quote, Profile, Research), the No. 2 U.S. home funding company, sold $10 billion in three-year notes, the largest single new issue since the agency started its global note program over a decade ago. The issue was oversold by about 30 percent, according to Freddie's treasurer.
"A lot of cash that's been sitting on the sidelines that might be a little cautious about going directly into equities...is looking for high-quality. non-Treasury opportunities," said Stephen Wood, senior portfolio strategist at Russell Investments in New York, which has $150 billion of assets under management.
more....
http://uk.reuters.com/article/marketsNewsUS/idUKN1845759320090218
Wed Feb 18, 2009 10:43pm GMT
By Dena Aubin and Lynn Adler
NEW YORK, Feb 18 (Reuters) - Borrowers including Freddie Mac and Swiss drugmaker Roche (ROG.VX: Quote, Profile, Research) tapped the U.S. debt market for more than $27 billion in bonds on Wednesday as a search for yield drew investors to the highly rated deals.
Both the Freddie Mac and Roche deals were records for the U.S. market and indicate bond investors are reaching beyond the safety of Treasuries as credit markets begin to thaw.
Freddie Mac (FRE.N: Quote, Profile, Research) (FRE.P: Quote, Profile, Research), the No. 2 U.S. home funding company, sold $10 billion in three-year notes, the largest single new issue since the agency started its global note program over a decade ago. The issue was oversold by about 30 percent, according to Freddie's treasurer.
"A lot of cash that's been sitting on the sidelines that might be a little cautious about going directly into equities...is looking for high-quality. non-Treasury opportunities," said Stephen Wood, senior portfolio strategist at Russell Investments in New York, which has $150 billion of assets under management.
more....
http://uk.reuters.com/article/marketsNewsUS/idUKN1845759320090218