Corporate bond sales strong

September 11, 1992|By Bloomberg Business News

NEW YORK -- Corporate bond sales exceeded $2 billion for the third straight day yesterday as interest rates continued to decline.

Duke Power Co. sold $200 million of 13-year notes. Heller Financial sold $200 million of floating rate notes. International Lease Finance issued $100 million of three-year notes. Masco Corp. sold $200 million of seven-year notes. Western Publishing Group issued $150 million of 10-year notes. Several banks sold a total of $500 million of one-year notes.

In the asset-backed bond market, Chrysler Corp. sold $937.5 million of certificates backed by car loans. Another $1 billion of bonds could be sold by the end of today.

Grand Metropolitan Investment Corp. is preparing a $750 million bond sale.

Investors say they continue to buy corporate bonds despite the large number of sales. "The market has absorbed the deluge of paper fairly well," said Sid Bakst, manager of $7.5 billion in corporate bonds for New York Life Insurance Co.

Corporations sold more than $8 billion of bonds since last Friday when interest rates plummeted after the government said the nation lost 83,000 jobs in August. The 30-year Treasury bond is yielding 7.23 percent, down from 7.9 percent three months ago.

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