Last week's new U.S. bond issues totaled just under $22 billion. That moderate sum would have been much smaller but for one issuer making up nearly half the total.
I own shares and have a long-standing outperform CAPScall on McDonald's, but BlackRock is the most interesting based on last week's bond issues. The company has enough confidence that its shares are undervalued to buy part of the Barclays sale using borrowed funds. In addition, BlackRock improves its cash flow by using cheap, borrowed money to take down stock with a 3.5% yield. Combine that with a reasonable valuation, and it's enough for me to add an outperform CAPScall on BlackRock to my scorecard.