Emerging-Market Bond Sales Reach Record $42 Billion in January

Companies in developing countries sold a record $42.1 billion dollar-denominated debt in January, fueled by demand for Asian bonds and non-investment grade notes, according to Bank of America Corp.

The bond sales marked a 10 percent increase from the previous record set in September, analysts led by New York-based Oleg Melentyev, wrote in a Feb. 3 e-mailed report. Asian companies sold $22.8 billion bonds, about 40 percent more than the previous high of $16.3 billion four months earlier.

High-yielding, or junk, bond issuances reached $18.1 billion in January, a 44 percent rise from the previous monthly record of $12.6 billion in May 2011. The January figure represents about 30 percent of the average annual issuance of junk bonds over the last three years, according to the report.

Companies including China Railway Resources Huitung Ltd. and Banco Do Brasil SA (BBAS3) raised capital to lock in yields at record lows. Yields on emerging-market corporate bonds fell to a record 4.11 percent on Jan. 24, Bank of America data show.

Global corporate bond sales reached a record $412.3 billion last month, surpassing the previous record of $407.2 billion in January 2009, according to data compiled by Bloomberg.

To contact the reporter on this story: Ye Xie in New York at yxie6@bloomberg.net

To contact the editor responsible for this story: Emma O’Brien at eobrien6@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.