Finance bonds pull ahead as JPMorgan sells debt: credit markets
Financial company bonds are beating industrial debt by the most this year after lagging behind in February, encouraging investors to snap up new issues from JPMorgan Chase & Co. and Credit Suisse Group AG. Debt sold by banks, insurers and brokers returned 0.81 percent this month through yesterday, compared with 0.4 percent for the rest of the market, according to Bank of America Merrill Lynch index data. The cost to borrow for banks is the lowest since February 2008, with yields falling to within 1.93 percentage points of Treasuries on March 18. Bond sales yesterday by JPMorgan, the second-largest U.S. bank by assets, and Zurich-based Credit Suisse drove global financial debt issuance this month to at least $121 billion, surpassing February’s total by 22 percent, according to data compiled by Bloomberg. Goldman Sachs Group Inc. began marketing debt today in a reopening. The MSCI World index of stocks shows financial company earnings exceeding economists’ estimates by an average 13 percent this year.