Fed Plan Stimulates Companies --- Issuance of $12 Billion Makes for Busiest Day Since Sept. 8
A bevy of household names rushed to sell cheap debt on Thursday after the Federal Reserve said it would pump at least $600 billion into the financial system in a bid to revive the economy by pushing down interest rates further.</br></br>At least $12 billion in high-grade bonds came to market, making it one of the busiest days in nearly two months, according to data provider Dealogic, the most since companies sold $19.2 billion of investment-grade bonds on Sept. 8.</br></br>Coca-Cola, Dow Chemical, General Electric General Electric Capital and Oglethorpe Power were all in the market.</br></br>Coca-Cola's issue, at $4.5 billion, was the biggest of the day and the company's largest ever.</br></br>Corporations have been issuing bonds in droves this year, taking advantage of unprecedented market conditions, in particular the historically low yields on the Treasury securities to which their bonds are benchmarked. The Fed's renewed effort to lower Treasury yields rekindled their appetite to stockpile cheap cash for rainy day funds, acquisitions or share buybacks.