Single Company Eyes New U.S. High-Grade Bond Sale on Fed Day

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One company is looking to sell new U.S. investment-grade bonds on Wednesday, according to an informal survey of debt underwriters, as the Federal Reserve meets for the second time this year. The backdrop for issuance is shaky with equity futures mixed, the 10-year Treasury yield higher at 1.66% and the high-grade CDX wider by a half of a basis point.

Source: Bloomberg

The sole potential deal will have to contend with possible headline risk from Fed comments Wednesday afternoon.

However, any new issuance would likely put monthly volume over estimates calling for $135 billion. So far this week, borrowers have sold $15.6 billion of new debt. Tuesday’s Deutsche Bank and Standard Chartered ESG deals were heavily subscribed, Illumina was able to raise cash to help finance its Grail acquisition, and Charles Schwab successfully tapped the bond market two days in a row. Average book orders were 2.8 times deal size, a clear indication demand for new deals remains strong though there have been pockets of pushback from investors.