“VOLVO TO SELL EU300M OF 7Y BONDS AT MS+ 120-125 BPS”
This works out to be c.2.5% for 7 year debt. That is very cheap, especially for a BBB-rated cyclical truck/construction equipment business. It shows again how eager the corporate bond is for issuance. Incidentally, Volvo issued an 8y bond in Feb, currently it’s trading at 112, a yield of 2.3% with just over 7y to maturity. Money is very cheap for investment grade businesses, which reminds us to stay long the de-equitisers.
