U.S. corporate borrowers are selling 30-year debt for the first time in at least a decade, supported by investor’s appetite. The issuance of investment-grade bonds maturing in 30 years or more totals USD 83.6 billion to date this year. This exceeds the annual total in 2010 and 2011.
According to Jonathan Fine, Head of investment-grade syndicate for the Americas at Goldman Sachs Group Inc., issuers are considering the sale of long-term bonds as once-in-a-lifetime opportunity to fund at the levels that they can in the long end of the curve. The index issued by the Bank of America Merrill Lynch affirms that demand is helping to send duration to the highest level in almost two decades for all investment-grade debt.