Defense Bonds Rise as U.S. Signals Broader War: Rates

Lockheed Martin Corp. bonds have soared as investors snap up the debt of defense contractors during the largest U.S. military build-up since the Vietnam War.

Lockheed's benchmark note has risen 9.6 percent this year, compared with a 3.9 percent return for corporate bonds overall. Bonds of Raytheon Co., Northrop Grumman Corp., and Boeing Co., have also risen more than broad indexes as the U.S. tracks down al-Qaeda loyalists in the war on terrorism and considers an invasion of Iraq to topple Saddam Hussein.