Bank of America Corp., the second- biggest U.S. lender by assets, and automaker Ford Motor Co. led companies in the U.S. selling about $15 billion of bonds Tuesday in the busiest day in more than seven weeks.
Bank of America sold $6 billion of debt in three parts, the largest dollar offering in about a month, and Ford issued $1.25 billion of five-year notes, according to data compiled by Bloomberg. The sales were the most since $18.3 billion on Nov. 14 and compare with a 2012 daily average of $6.4 billion.
Issuance is rising after President Barack Obama and lawmakers struck a deal last week that averted the so-called fiscal cliff of income-tax increases on most Americans and delayed automatic spending cuts until March 1. The 10-year Treasury yield has increased 10 basis points since Dec. 31 to 1.86 percent Tuesday, spurring issuers to lock in borrowing costs while they hover near record lows, according to Timothy Cox at Mizuho Securities USA Inc.
Corporate treasurers “say, ‘I can’t afford to wait,’ ” Cox, the New York-based executive director of debt capital markets, said in a telephone interview. “The market is pristine and there’s a window of issuance, which could be over the next two months before the next cliff discussions come into play.”
Bank of America Corp. sold $1 billion of 1.25 percent, three-year notes to yield 95 basis points more than similar-maturity Treasurys, $2 billion of 2 percent, five-year securities at a relative yield of 125 basis points and $3 billion of 3.3 percent, 10-year notes at 150 basis points, Bloomberg data show. The sale was the largest in the U.S. since Intel Corp. issued $6 billion of bonds on Dec. 4.
Ford’s financing unit issued debt after its parent company raised $2 billion of 4.75 percent, 30-year securities last week, Bloomberg data show. The new 2.375 percent bonds priced with a spread of 168 basis points.
Comcast Corp. offered $750 million of 2.85 percent, 10-year debt, $1.7 billion of 4.25 percent, 20-year securities and $500 million of 4.5 percent, 30-year debentures, Bloomberg data show. Little Rock, Arkansas-based Windstream Corp. sold $700 million of 6.375 percent, 10.5-year bonds to fund a tender offer.
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