Latest news with #debtissuance
Wall Street Journal
17-07-2025
- Business
- Wall Street Journal
Eurozone Countries Will Find Buyers as They Increase Debt, But at a Cost
Eurozone countries should find plenty of buyers as their debt issuance increases, albeit at a higher cost and tilted more towards shorter-dated bonds, analysts said. Government bond supply is set to grow after North Atlantic Treaty Organization allies agreed to raise defense spending to 5% of GDP by 2035 from 2% now, with only Spain getting an opt-out. The eurozone's stable political backdrop and slowly recovering economy are expected to attract investors, with demand already strong.
Bloomberg
16-07-2025
- Business
- Bloomberg
Japan Chipmaker Kioxia Sells $2.2 Billion of Bonds in Debut Deal
Chipmaker Kioxia Holdings Corp. sold $2.2 billion of US junk bonds in its first corporate debt issuance, becoming the latest Japanese firm to storm overseas credit markets. The sale involves $1.1 billion each of five- and eight-year notes after initially targeting $1.5 billion of combined issuance, according to a person familiar with the matter. The bonds will respectively yield 6.25% and 6.625%, an eighth-point less than earlier price talk, said the person, who asked not to be identified as they're not authorized to speak publicly.
Yahoo
16-07-2025
- Business
- Yahoo
Japan's $100B Bond Boom Is Just Beginning -- Wall Street Can't Get Enough
Japanese giants are storming the global bond marketand investors are piling in. NTT, Nissan (NSANY), and SoftBank (SFTBY) have just raised over $26 billion in a string of blockbuster deals that's turning heads on Wall Street and beyond. NTT alone pulled in a staggering $17.7 billion, with demand topping $100 billionmaking it the second-largest US dollar bond sale this year. One Morgan Stanley banker is calling this surge of overseas issuance the rise of reverse Samurai bonds. And there's more coming. Kioxia Holdings is next in line, upsizing its debut dollar bond to $2.2 billion. The reason? Japan's local bond market is getting shaky, with yields now twice what they were 18 months ago. Companies are heading west, where demand is deeper, costs are lower, and maturities stretch longer. Warning! GuruFocus has detected 13 Warning Signs with SFTBY. Behind the scenes, there's a major shift unfolding. Japan's once-stable debt market is no longer a sure thing. Traders are pricing in more government spending, pushing yields higher and making yen-based debt less appealingboth for issuers and investors. Case in point: a seven-year, single-A yen bond now yields around 1.6%, up from near-zero in 2021. And with 13.2 trillion ($89 billion) in bonds maturing by 2026, non-financial Japanese corporates are facing a refinancing wall. Bloomberg Intelligence credit analyst Sharon Chen points out that sectors like utilities, telecom, and transport are especially likely to go offshore, where the euro and dollar markets offer longer tenors and tighter spreads. For global investors, this could be just the beginning. Japan still makes up a tiny slice of global bond indexesjust 2% in the dollar high-grade market and 1.6% in Europe. That's part of the appeal. Portfolio managers are hungry for new names and fresh diversification plays. And with syndicate desks flush with cash and demand running hot, issuers are striking while the window's wide open. As JPMorgan's Andreas Michalitsianos put it: Supply only comes when there's demand. Right now, that demand is roaring. This article first appeared on GuruFocus.
Bloomberg
16-07-2025
- Business
- Bloomberg
Trafigura Returns to Bond Market for First Time in Several Years
Trafigura Group, one of the world's largest suppliers of commodities, has returned to the bond market with a $500 million issuance, its first public debt offering in several years. Trafigura has a five-year $500 million bond maturing in September this year, and a €500 million ($581 million) bond for the same tenor coming due in 2026.
Yahoo
14-07-2025
- Business
- Yahoo
Push to weaken Chicago Mayor Brandon Johnson's power to issue debt narrowly fails
CHICAGO — A City Council push to wrest power away from Mayor Brandon Johnson and his successors by requiring more aldermanic support to issue debt narrowly failed to advance Monday. The City Council's Finance Committee voted 17-to-16 to reject an ordinance that would have raised the vote threshold from a simple majority to a two-thirds majority. The measure would have sharply weakened the control of Johnson and future mayors over debt issuances, making it harder to raise money for infrastructure spending. Before the vote, sponsor Ald. Marty Quinn, 13th, said the higher bar would force Johnson to work more closely with aldermen to pass bond plans and help Chicago avoid future credit downgrades. 'We cannot let this administration take on more debt and strap future Chicagoans with the bill,' Quinn said. 'It's time to be a more co-equal branch, partner and voice in City Hall. If not, what are we doing here?' But while Johnson critics praised the move as fiscally responsible, mayoral allies blasted it as a reckless effort to block the City Council majority's will. 'Essentially what this rule would do is empower a small group of people to hold everybody else hostage,' Budget Committee Chair Ald. Jason Ervin, 28th, said. 'This is not designed to help us. It is designed to empower a very small group of people who seem to be hellbent on driving us over a cliff.' Quinn introduced the measure in February as aldermen passed Johnson's $830 million bond plan in a close 26-to-23 vote. At the time, the Southwest Side alderman and other mayoral opponents blasted the plan's repayment structure as back-loaded and irresponsible. Fitch Ratings shifted the city's financial outlook to 'negative' in May. Ald. Matt O'Shea, 19th, argued before the vote Monday the measure could help rebuild confidence in a government that he said many Chicagoans do not trust. 'The people of Chicago don't trust government,' O'Shea said. 'What I've witnessed here these last two years, with our government — I'm talking about this building, this room — they're not wrong.' The Johnson administration has often lied to him in budget discussions, he added. 'There is not enough real, honest communication,' he said. 'If we communicate with each other, and enough information is provided to us, then we can make difficult decisions.' Earlier in the meeting, the committee advanced a $400,000 settlement to pay a woman injured after falling on a broken sidewalk. Aldermen also advanced $35.2 million in settlements related to wrong-location police raids, police misconduct and a botched police chase. Ald. Daniel La Spata, 1st, alluded to that broken sidewalk to push back against the debt ordinance. It is 'disingenuous' to say the city's infrastructure must be improved while making it more difficult for improvements to be made. 'I appreciate the desire for transparency… but there's a political reality that I recognize,' he said, referring to the committed bloc of aldermen who oppose most Johnson moves. Ald. Nicole Lee, 11th, said she could not remember when aldermen last hit 34 votes on a meaningful piece of legislation. 'I'm just really not sure we're going to be able to get to two-thirds,' Lee said before voting against the measure. While Johnson weathered the effort to take power away from him, the tight vote embodied many of the struggles he has had in winning over aldermen and controlling legislation, and not just because of what the ordinance sought to do. Johnson's appointed mayor pro tempore, Ald. Sam Nugent, 39th, used her position's powers to cast a vote against Johnson's position, even though she is not a committee member. Before Ald. Timmy Knudsen, 43rd, voted for the ordinance, he suggested he would have preferred a compromise. Knudsen had months ago proposed new guardrails on bond authorization to limit interest totals and back-loaded repayment schedules. But Johnson's administration would not agree to the policy he argued would have been a more moderate compromise, he said. 'Through months of good faith and transparent negotiation, I felt really confident that we were going to get somewhere,' he said. 'Two-thirds at least will get us the kind of negotiation leverage we need.' Aldermen did not consider whether or not they would replace the state's expiring 1% grocery tax with a 1% tax of their own. The lack of consideration on the thorny question sets up more discussion in September, when the City Council would need to quickly pass the tax if it plans to make the state's Oct. 1 deadline to do so. ____
