After a remarkable run, corporates are paying up to tap the capital markets.
The corporate bond market’s bull run appears to be running out of steam. According to the Financial Times, companies are being forced to offer new issue premiums on new bond offerings—something they avoided during the heady days of the second half of 2009. This doesn’t appear to be evidence of a wholesale retrenchment in the market. Rather, it’s more of a return to normalcy. Nonetheless, companies that missed last fall’s window must now pay up.