The corporate credit markets served up a full plate last week, with Bloomberg reporting more than $38 billion in sales, the most in five months. Just three companies swiped their corporate credit cards for over one-third of the total. Who's doing all that borrowing and what are they doing with the money? Here are a few of the stories.
Next in the multibillion-dollar club is miner Peabody Energy
Continuing the refinance story, Dr Pepper Snapple
All five of these issues show companies continuing to take advantage of low interest rates to buy back shares, fund acquisitions, call higher rate paper, or lock in low rates while they're here. Companies are busy selling bonds to buy equity in themselves or acquire other firms. Foolish investors should think carefully before taking the other side of that trade.
Fool contributor Russ Krull owns shares of Intel, but no other company mentioned. The Motley Fool owns shares of Teva Pharmaceutical Industries and Intel. The Fool owns shares of and has bought calls on Intel. Motley Fool newsletter services have recommended buying shares of Intel and Teva Pharmaceutical Industries. Motley Fool newsletter services have recommended creating a bull call spread position in Intel. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.