A handful of companies have held back on selling high-grade corporate bonds in the US after yields have climbed in the last week close to their highest levels since the middle of last year, boosting potential borrowing costs.
Sales have generally been relatively active in the first few trading days of January, but at least one company opted to stand down from issuing high-grade bonds Wednesday, according to Bloomberg News strategist Brian Smith. A handful of other borrowers chose to put off their deals until next week, Smith wrote.
They’re delaying sales as borrowing costs have edged higher recently. The average yield on a US high-grade corporate bond was 5.41% at Wednesday’s close, hovering around its highest level since July and up from 5.33% at the end of last year.
“Companies may wait on a better entry point with yields well above month-ago levels,” Bloomberg Intelligence analyst Noel Hebert said. “If we think…
