Sep. 11 - Verizon's bond offering will be the biggest ever by far, nearly triple that of Apple and larger than the GDP of 90 countries. Fred Katayama reports.
It's by far the biggest ever of its kind. Sources say Verizon Communications will sell up to $49 billion of bonds today. That's nearly triple the previous record held by Apple. And it's larger than the GDP of 90 countries. And demand is huge from investors hungry for yield. Sources say more than $90 billion worth of orders from more than 800 investors have poured in for the bonds offered by the world's largest telecom company. A 10-year bond, for example, is expected to carry a yield that's 2.25 percentage points higher than similar treasuries. Verizon kept boosting the amount it planned to offer because it wants to sell as much as it can while money is cheap. The big bond sale comes just one week before the Fed meets to determine whether to start cutting its bond purchases this month, a move that would likely drive interest rates higher. The bonds will finance Verizon's $130 billion buyout of Verizon Wireless, the joint venture it runs with Vodafone. The vast scale of this offering has already led to a repricing of bonds issued by its rivals, pushing prices down.