Some good news for a change as the WSJ reports that large companies are once again able to raise cash via bond offerings, signaling a thaw in some parts of the credit markets. This fits perfectly into one of my current investing themes, which is to move up the capital structure and focus more on high quality fixed income than dictated by tradition asset allocation models.
A growing number of big companies are taking advantage of the thawing credit markets to raise large sums of money at low interest rates, with Cisco Systems Inc. Monday selling $4 billion in bonds to bolster its war chest for acquisitions.
Since the beginning of the year, U.S. companies have sold $78.3 billion of investment-grade corporate bonds that aren’t guaranteed through a government program, according to research firm Dealogic. This is up from the December quarter when companies sold on average $21 billion of nongovernment-backed debt a month.