Deals
Bond Sales Drought in August Swells Pipeline With M&A Debt Deals
- Issuance frozen for 10 straight days inflates deal backlog
- Companies looking to issue M&A bonds may have to pay up
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A ten-day drought in corporate bond sales is worsening a backlog of U.S. companies that need to raise debt to fund takeovers as borrowing costs rise.
High-grade companies have retreated from debt markets as concern that China’s slowdown is hampering global growth roils investors. Investors pulled $1.99 billion from mutual funds that buy investment-grade debt last week, the biggest withdrawal in two years, according to Lipper.