An immediate manifestation is the problem in getting
large bond issuances sold.
Not exact matches
This increased demand has been met with an equally
large increase in supply as corporate
bond issuance has roughly doubled since 2008.
The 10 year maturity U.S. Treasury Note (UST 10 yr) is thought to be the primary benchmark for the U.S.
bond market because it has the
largest issuance and is used as the basis for fixed rate mortgage pricing.
Other factors may have been a degree of illiquidity in the swap market in the face of
large increases in private sector
bond issuance and rising interest rates.
These concerns might recently have been exacerbated by changes in the pattern of corporate financing: in countries in which the swap spread has increased the most — the US and UK — growth in private sector
bond issuance has been relatively
large, while net equity
issuance has been low (or even negative as in the United States).
Larger firms have, however, maintained a fairly solid pace of non-intermediated debt raisings, mainly through offshore
bond issuance.
Analysts at Moody's Investors Service Middle East in Dubai say the
issuance is credit positive for Saudi banks because their profitability will benefit from the transfer of their
large, low - yielding reserves of cash and placements from the Saudi Arabian Monetary Authority and other banks to higher - yielding government Islamic
bonds.
Two of the
largest risks are that the average credit quality of
bonds in this sector is well below investment grade and the heavy
issuance of zero coupon
bonds creates a sector that has one of the longest durations in the municipal
bond market.
Surety
bonds, like most
bond issues, tend to be quite
large and therefore the issuing organization assumes more risk should the company which took on the debt go out of business or fail to meet financial obligations of the
issuance.
Buckner Senior Living was on the receiving end of the
larger closing, a $ 232.5 million fixed - rate
bond issuance to fund the development of its 325 - unit entrance fee CCRC in the North Park neighborhood of Dallas.
«U.S. real - estate developers are joining the
largest wave of local debt
issuance on the Tel Aviv Stock Exchange
bond trading platform since 2007, capitalizing on yield - starved investors to obtain financing.»