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High Yield Issuers Return to Market after the Fed’s Statement (Part 2 of 6) (Continued from Part 1) Deal and flow analysis in the high yield bond markets
Issuance volume had slowed down in the previous week, as the US Federal Reserve was to announce its monetary policy stance. Following that announcement, issuers of junk bonds, or high yield debt, returned to the market in the week leading up to March 27. With a rate hike looming in 2015, issuers returned to raise debt at still-cheap rates. The SPDR Barclays Capital High Yield Bond ETF (JNK) and the iShares iBoxx $ High Yield Corporate Bond Fund (HYG) track high yield debt.
According to data from S&P Capital IQ/LCD, dollar-denominated bonds amounting to $7.3 billion were issued across 16 transactions in the week ended March 27. The issuance volume rose by 49.0% from the week ended March 20. Issuance was evenly spread across the week.
Last week brought the total US dollar issuance of high yield bonds to $90.1 billion in 2015 year-to-date. This is up 22% from the corresponding period of 2014. The number of transactions jumped from six to 16 week-over-week.
Refinancing deals surge
Refinancing remained the purpose of choice for the seventh successive week. Refinancing-related issues accounted for nine out of 16 transactions in the week. While six deals were for corporate purposes, one deal was for acquisition purposes.
Though the number of refinancing deals overshadowed the number of deals for corporate purposes, the largest deal of the week was for the latter. Ally Financial (ALLY) issued senior notes worth $1.25 billion last week.
The largest refinancing deal last week was by oil and gas company Whiting Petroleum (WLL), which issued senior notes worth $750 million.
Other notable deals came from Germany’s Schaeffler Group and from Cliffs Natural Resources (CLF).
We’ll analyze these deals and pricing trends in detail in the next part of this series.
Continue to Part 3 Browse this series on Market Realist:
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CLIFFS Natural Resources
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PRODUCER |
CODE : CLF |
ISIN : US18683K1016 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
CLIFFS Natural Res is a iron producing company based in United states of america. CLIFFS Natural Res produces iron, coal in Australia, in Brazil and in Canada, and holds various exploration projects in Canada. Its main assets in production are WABUSH MINE, EMPIRE AND TILDEN MINES, HIBBING TACONITE, NORTHSHORE MINE, UNITED TACONITE, OAK GROVE MINE, GREEN RIDGE MINE and PINNACLE MINE in Canada, AUSTRALIAN IRON ORE and SONOMA in Australia and AMAPA in Brazil and its main exploration properties are MT JACKSON J1 in Australia and DIAGNOS, WAWA, FREEWEST, MC FAULD'S LAKE, MACFADYEN, WAWA CLAIMS and BIG DADDY in Canada. CLIFFS Natural Res is listed in France, in Germany and in United States of America. Its market capitalisation is US$ 3.4 billions as of today (€ 3.1 billions). Its stock quote reached its highest recent level on May 16, 2008 at US$ 99.17, and its lowest recent point on January 15, 2016 at US$ 1.20. CLIFFS Natural Res has 297 400 968 shares outstanding. |