BlackRock Inc. is planning its first bond sale in euros, a sign there may be no better time to raise funds in Europe’s credit markets.
The world’s largest asset manager, whose business depends on accurately predicting market trends, hired banks to organize investor meetings to discuss a sale, according to a person familiar with the matter, who asked not to be identified because they’re not authorized to speak publicly.
“It might be an indicator that we are at the top of the market,” said Jonathan Pitkanen, the London-based head of investment-grade credit research at Threadneedle Asset Management Ltd., which oversees 92.6 billion pounds ($135.7 billion). “There is definitely a trend of U.S. issuers coming to Europe. It’s been very notable over the last months and is likely to continue.”
BlackRock joins U.S. companies including Coca-Cola Co. and Berkshire Hathaway Inc. in selling euro-denominated bonds as European Central Bank measures to stimulate the economy suppress borrowing costs. Average yields on investment-grade bonds in the single currency are at a five-week low of 0.87 percent, Bank of America Merrill Lynch index data show. They reached a record-low 0.85 percent on March 10.
BlackRock spokesmen in London and New York weren’t immediately available to comment on the sale when contacted by phone.
Barclays Plc, Citigroup Inc. and JPMorgan Chase & Co. scheduled investor meetings for April 20 and April 21, the person familiar with the matter said.