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UPDATE 1-U.S. corporate bond sales plummet in 2008

Posted on: Wed, 31 Dec 2008 12:05:00 EST

Symbols: TRIN

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NEW YORK, Jan 01, 2009 (Reuters via COMTEX) --
TRIN | Quote | Chart | News | PowerRating -- U.S. corporate bond sales decreased sharply in
2008, according to Thomson Reuters data, amid a global credit crisis that cut
investors' appetite for risky assets and hampered companies' ability to sell
debt.

Sales of investment-grade bonds slid almost 35 percent from 2007 levels,
and sales of junk bonds plunged more than 70 percent.

U.S. investment-grade bond sales fell to $645 billion from $986.8 billion
in 2007. JPMorgan Chase & Co. was the lead bookrunner for high-grade sales in
2008, followed by Citigroup, the data showed.

U.S. junk bond sales fell to $37.2 billion in 2008 from $135.6 billion in
2007, Thomson Reuters said. JPMorgan Chase also was lead bookrunner in junk bond
sales, followed by Banc of America.

"There's no surprise that we saw a drop-off with the complete market
meltdown," said Mirko Mikelic, a portfolio manager at Fifth Third Asset
Management in Grand Rapids, Michigan. "Sales could still be tough in the first
half of the year. Companies will still be paying a huge premiums."

Investment-grade corporate bond spreads rose to a record 656 basis points
in December amid the yearlong global credit crisis and U.S. recession. Spreads
have since narrowed to about 612 basis points as the Federal Reserve cut its
benchmark rate target to near zero.

"Spreads are at ridiculous levels," said Mirko, who forecast a pick-up in
defaults in 2009 as well as an increase in company bond sales toward the end of
2009. "If you're a good company, you should be able to issue, and you'll be able
to do sales."

(Reporting by Walden Siew, Editing by Leslie Adler) Keywords: USA
CORPBONDS/RANKINGS

(walden.siew@thomsonreuters.com; +1-646-223-6333; Reuters Messaging:
walden.siew.reuters.com@reuters.net)

Copyright Thomson Reuters 2008. All rights reserved.
The copying, republication or redistribution of Reuters News Content, including
by framing or similar means, is expressly prohibited without the prior written
consent of Thomson Reuters.

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