Companies Embrace Low Interest Rates by Selling Bonds to Raise Billions

Posted September 16th, 2013 by Brahm Canzer & filed under Company Analysis, Financial analysis, Growth & Valuation, Management Issues.

Description: For companies looking to raise money through the debt markets, and the bankers egging them on, it seems no sum is too large.Verizon Communications shattered records and shook up the bond world on Wednesday when it sold $49 billion of investment-grade corporate debt at one time.

Source: NYTimes.com

Date: Sep 11, 2013

Link: http://dealbook.nytimes.com/2013/09/11/verizon-set-for-49-billion-debt-sale/?ref=business

Questions for Discussions:

What are the risks to borrowing such large sums of money by firms like Verizon and Verizon investors?
What are the risks for the lenders?
Do you think we will see a growing rate of M&A?