Gilead Sells Longer-Dated Debt Below Existing Yield as US IG Spreads Hit 3-Month Low
Updated
Updated · Bloomberg · May 15
Gilead Sells Longer-Dated Debt Below Existing Yield as US IG Spreads Hit 3-Month Low
1 articles · Updated · Bloomberg · May 15
Gilead Sciences sold longer-dated bonds at a yield below its outstanding debt, an unusual pricing outcome that pointed to exceptionally strong investor demand.
US investment-grade risk premiums fell Thursday to their lowest level since early February as buyers favored corporate credit over sovereign bonds amid inflation concerns.
High-grade bond funds drew their biggest inflows in late April and early May since September 2020, showing investors were still chasing elevated yields.
Blue-chip earnings strength has helped credit markets look past lingering Middle East tensions, reinforcing the appeal of corporate bonds over government debt.
Are today's high corporate yields a golden opportunity or a dangerous late-cycle trap?
Why are bond investors ignoring geopolitical risks that are rattling other markets?