Borrowers Lose Leverage as Corporate Bond Buyers Grab the Reins
- Investment-grade borrowers are paying more to sell debt
- This shift has put bond investors in the driver’s seat
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The high-grade bond market has turned from borrower paradise to borrower ... purgatory.
Investors have forced investment grade-bond issuers in the U.S. to pony up more money to sell top-notch bonds over the past month. After paying little in so-called new issue concessions, borrowers are now regularly forking over a premium of more than 10 basis points as more investors become choosy about the debt they buy.