Chuck Roberts is an experienced financial advisor and Managing Director/Investments of The CR Wealth Management Group of Stifel. From his office in New York City, Chuck helps clients invest in securities, such as corporate bonds.
In August 2017, Amazon borrowed $16 billion from investors in the corporate bond market. For such a large sum, it was only the fourth largest corporate bond floated in the United States this year. Microsoft set the ball rolling with a $17 billion bond issue in January, followed by AT&T’s mid-year $22.5 billion bond issue, and finally British American Tobacco’s $17.25 billion issue in early August.
Going by the recent trends, this will be the third year in a row U.S. corporate bonds issued surpassed the $1 trillion mark. In 2016, total corporate bonds issued hit $1.35 trillion, dwarfing the less than $200 billion equities issued that year.
The U.S. corporate bond market has been on an upward track – rising by nearly 50% in the past five years alone – on the back of cheap borrowing. While there have been a few bumps along the way, the market has consistently regained its momentum. The question Chuck Roberts and other financial advisors are now asking is: How long will the upward trend last?
When investing in bonds, it is important to note that as interest rates rise, bond prices will fall.
Article provided by Chuck Roberts, Managing Director/Investments with Stifel, Nicolaus & Company, Incorporated, member SIPC and New York Stock Exchange, who can be contacted in the New York, New York office at (212) 328-1000.
In August 2017, Amazon borrowed $16 billion from investors in the corporate bond market. For such a large sum, it was only the fourth largest corporate bond floated in the United States this year. Microsoft set the ball rolling with a $17 billion bond issue in January, followed by AT&T’s mid-year $22.5 billion bond issue, and finally British American Tobacco’s $17.25 billion issue in early August.
Going by the recent trends, this will be the third year in a row U.S. corporate bonds issued surpassed the $1 trillion mark. In 2016, total corporate bonds issued hit $1.35 trillion, dwarfing the less than $200 billion equities issued that year.
The U.S. corporate bond market has been on an upward track – rising by nearly 50% in the past five years alone – on the back of cheap borrowing. While there have been a few bumps along the way, the market has consistently regained its momentum. The question Chuck Roberts and other financial advisors are now asking is: How long will the upward trend last?
When investing in bonds, it is important to note that as interest rates rise, bond prices will fall.
Article provided by Chuck Roberts, Managing Director/Investments with Stifel, Nicolaus & Company, Incorporated, member SIPC and New York Stock Exchange, who can be contacted in the New York, New York office at (212) 328-1000.
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