Investors Loading Up on Corporates, Banks in 2012 (International Business Times)

January was a good month for corporate bonds. Investors are desperate for yield and the issuers want to be sure to take advantage of historically lowbond rates. Even though half the world is scared of banks, it seems even they can borrow money pretty cheaply these days. My favorite bond issue of January is SABMiller, because its always good when someone is investing in beer production.

But in all seriousness, while this is all good news its hard to feel confident that the mood will last. The market is fickle and often irrational lately – if Merkel says the wrong thing tomorrow this call all go in the other direction. But here’s to hoping this is all a sign of good things to come in 2012.

“Because the markets are very volatile, more than what happened a month ago or will happen a month from now, what matters is what’s happening right now,” Kevin McPartland, director of fixed-income research for financial markets research firm TABB Group said.

And there’s always the allure of an almost-free lunch. “Funding is cheap so there’s a lot of incentive to tap the markets now … even if they don’t have anything to do with the money,” McPartland said.

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