“The response to these deals was ridiculous”

Yield-hungry institutional investors are still going banoodles for corporate debt of every stripe.

Anecdotally-speaking, the quote above is from a Reuters story on a new bond issue from Zoetis, a not-yet-public animal health spin-off from Pfizer that came to market with a debt offering.

Zoetis floated a four-part offering of $3.65 billion and the order book ended up more like $30 billion – ten times oversubscribed!

From Reuters:

“The response to these deals was ridiculous,” said one senior banker.

“Receiving orders north of US$30bn for Zoetis is a staggering result. This demand is clearly at odds with all that speculation that investments are moving out of bonds into equities and that the high-grade issuance party is over. Clearly it is not over yet.”

The party continues.

Zoetis, Goldman Sachs prolong high-grade party (Reuters)


What's been said:

Discussions found on the web
  1. Bitcoin Evolution Review commented on Sep 21

    … [Trackback]

    […] Read More Information here on that Topic: thereformedbroker.com/2013/01/18/the-response-to-these-deals-was-ridiculous/ […]