The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Corporate bond issuance gets even cheaper

And you thought 2004 was a great market for issuing corporate debt. Figures just released by iBoxx have shown that in the first two months of 2005 corporate bond spreads narrowed by almost as much as they did in the entirety of last year.

Numbers from the corporate bond index reveal that the euro-aggregate corporate spread has narrowed from around 48bp over gilts to 40bp in January and February. Last year the market narrowed from 60bp to 48bp the whole year, a drop of 20% compared to the 17% already achieved in 2005.

Corporate debt is now only 0.4% more expensive on average than government debt – the narrowest corporate spread since the creation of the euro in 1999.

The US corporate bond market has also seen falling spreads in the first two months of the year, but not quite on the scale of Europe. The US corporate investment grade spread fell from around 89bp to 83bp, a drop of 6.7% compared to the total in 2004 of 13.6%.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree