AB InBev’s Mega Bonds Just the Start of a Corporate-Debt Deluge

“Companies will probably sell $280 billion of investment-grade corporate debt in 2016 to fund acquisitions globally, up from a record $258 billion last year, according to an estimate from Barclays Plc which excludes financial companies. After the beer deal, some of the year’s biggest debt offerings could come from Dell Inc., Anthem Inc. or Newell Rubbermaid Inc. to fund recently announced buyouts.  The flood of issuance could push up borrowing costs for companies that are issuing debt to finance takeovers. Other companies could also see their borrowing costs rise, as investors sell their current holdings to make room for new, higher-yielding bonds that are hitting the market.”

http://www.bloomberg.com/news/articles/2016-01-12/after-ab-inbev-a-flood-that-could-soak-corporate-bond-issuers

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