The explosive revival in corporate bond sales, which revved up the career of many a capital markets banker last year, remains on track in 2010. It's even accelerating for junk bonds, a bright sign for traders as well as bankers who specialize in lower-quality debt.
Last month's $33.7 billion in junk bond sales made it the busiest April ever, Bloomberg News reports. Moody's latest forecast calls for a 10 percent rise in junk issuance for all of 2010. Investment-grade issuance is seen dropping 7 percent. But coming off the record pace of 2009, that still represents a lot of activity.
Junk bonds continue to perform well, aided by the improving economy. Spreads over Treasuries widened last week for the first time in two months, according to Bank of America Merrill Lynch index data. The typical bond in that index yields 8.29 percent.
In the related market for speculative-grade corporate loans, Goldman Sachs credit strategist Alberto Gallo told Bloomberg, "We see demand continuing to outstrip supply in the next six months."
Junk Bond Sales Set Record as Investors Waver: Credit Markets [Bloomberg News]
Bair Warns Against New Curbs on Bank Trading [WSJ]
Markets Chief Promotes Idea Of EU Credit Rating Agency [France24]
Luxembourg's Bid For The Alternatives
UK Dominance Of European Venture Capital Grows [The Telegraph]
Berkshire Execs Blame Turmoil On Faulty Regulation [AP]
The real news is that Warren Buffett again defended Goldman Sachs executives. Buffett's top deputy, Berkshire Vice Chairman Charlie Munger, was particularly vocal, praising Goldman's morality as well as competence, while accusing regulators of "a combination of permissiveness and stupidity."
How To Become An Exec-For-Rent [Fortune]
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