Corporate Bond Bubble- AT&T Ups Bond Sale to $22.5 Billion

Corporate Bond Bubble

Corporate Bond Bubble in the making?

Investor demand for investment-grade credit is only growing stronger, as evidenced by portfolio managers’ appetite for AT&T’s (T) huge bond sale on Thursday. Originally expected at $15 billion, the deal size was upped Thursday afternoon to $22.5 billion. That makes it the third-largest corporate offering on record, according to S&P’s LCD News. It comes behind Verizon Communications (VZ) $49 billion sale in 2013 and Anheuser-Busch InBev’s $46 billion deal in January 2016, LCD data show. Investors indicated a desire to buy $63 billion in the bonds, making the deal several times oversubscribed. The proceeds are intended mainly to help finance its $85 billion purchase of Time Warner (TWX).  Full Story

The bond market is about to enter the 1st stage of the bubble phase that will eventually help fuel the feeding frenzy stage in the stock market. Potentially two bubbles could pop simultaneously, which would provide the manipulators with room to prepare the stage for a bailout that will make all the other bailouts in history appear to be a joke. In the process, millions will be fleeced and those joining the ranks of the poor will swell. The next disaster is being designed to wipe out a lot of middle players that have grown too big for their breeches. These players fall into the several hundred million dollar ranges to the 10 billion dollar ranges.  Thus, the carnage will be quiet severe.   We don’t intend to be in the markets when this occurs; we want to be sitting on the sidelines with a few short positions that we will add to as the situation unfolds.

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