TD Bank to sell bonds as financial companies tap market en masse
BNN Bloomberg
Toronto-Dominion Bank is the latest financial institution looking to tap the red-hot U.S. corporate bond market as companies look to borrow before yields rise further.
Toronto-Dominion Bank is the latest financial institution looking to tap the red-hot U.S. corporate bond market as companies look to borrow before yields rise further.
The lender is selling bonds in as many as five parts, according to a person with knowledge of the matter. The longest portion of the offering, a 10-year security, may yield between 0.95 percentage point and 1 percentage point above Treasuries, said the person, who asked not to be identified as the details are private.
Blue-chip companies are rushing to lock in lower borrowing costs as a rout in U.S. Treasuries jacks up bond yields. Seven borrowers, almost exclusively from the financial sector, sold US$11.25 billion of investment-grade corporate bonds on Monday.
TD Bank, Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co., Banco Santander SA and Societe Generale SA are are managing the bond sale, the person said.
