Via Peter Tchir of TF Market Advisors,
Last week P&G was able to issue a 10 year bond with a 2.3% coupon, priced to yield just a tad more than that with a spread of T+55. Yesterday, McDonald’s issued 30 year bonds with a 3.7% coupon, priced to yield just over that with a spread of 80 bps versus the long bond.
The Fed is doing everything it can to push people out the risk curve, and in particular is encouraging the hunt for yield in credit products (see here for the must-read
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