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IBM and AT&T add to floating-rate note frenzy
Reuters: Technology
Fri, 8 Feb 2013
Feb 8 (IFR) - IBM and AT&T made the most of a surge in demand for floating-rate notes in the US corporate bond market this week by issuing US$2.25bn of two-year and three-year floaters, and in IBM's case at a negative spread to Libor.
Western Asset manager Ryan Brist expects a lot of risk in the corporates market in 2013-14, as banks pare risky lending practices and opportunities to enter or exit the bond market shrink.
Concerns of global systemic shocks have lessened from previous levels, and corporate issuers are more likely to take on riskier bets, according to Dodge & Cox's Tom Dugan.