Corporate Bond Issues Up 18.3% (May 2006)
According to statistics published by the Bond Market Association, based on Thomson Financial Securities Data, corporate bond issues for the first five months of 2006, totaled $339 billion. This was an 18.3% increase over the same period in 2005.
New issues were concentrated on investment grade bonds that made up 91.7% of the total — a 21.7% increase over the first five months of 2005.
Issuance of high-yield bonds (junk bonds) fell 10% compared to a similar period in 2005, amounting to only $27.6 billion.
High rates of new supplies of corporate bonds have exerted pressure on interest rates in the first half of 2006.
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