Bond Cliff Looms With Slowest Sales Since 2008: Credit Markets
This article is for subscribers only.
Company bond sales worldwide are on pace for the slowest February since 2008 as the prospect of rising interest rates in the U.S. and persistent recession in Europe quashes the busiest start to a year on record.
“Economic conditions don’t warrant necessarily any significant increases in funding,” Kevin Flanagan, chief fixed-income strategist at Morgan Stanley Smith Barney in Purchase, New York, said in a telephone interview. “In terms of balance sheet and liquidity, cash on hand and refunding, the lion’s share of all that balance sheet repair work has been done.”