Corporate Bond Issuers Suffered Worst Day in Two Months
(Bloomberg) -- Corporate bond issuers had their worst day in two months Tuesday.
Sales totaling $4.3 billion, including from Corning Inc. and Ryder System Inc., failed to drum up much interest from U.S. investors. Corning failed to move from its so-called initial price thoughts -- generally considered a floor for pricing -- the first time this has happened for a deal since September.
Order books on the day were just 1.7 times covered compared to the year-to-date average of 2.9 times.
The investment-grade primary market has mostly taken the recent stock market volatility in stride. While some issuers have refrained from issuing bonds, leading to three blank sessions last week, deal pricing has usually been in line or better than year-to-date averages.
This morning Daimler Finance North America LLC and Canadian National Railway Co. announced deals that are expected to price today.
(An earlier version of this story incorrectly stated issuers suffered the worst day since June.)
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