Anheuser-Busch InBev would be selling bonds as yields plunge to an all-time low in three weeks in the Europe. The world's largest brewer would be offering bonds in euros and pounds.
A person familiar with the matter told Bloomberg that AB InBev would selling seven-year euro notes that would have a yield of 48 basis points higher than the mid-swap rate. The Belgium-based brewer would also be marketing notes in pounds with a maturity date of 12 years. The notes would have a yield of 105 basis points higher than the government debt of the UK.
According to Bloomberg, the growing strength of the global economy had borrowers worried that it could prompt higher rates. The US Federal Reserve had also begun a two-day meeting today to discuss policy. It was also widely expected that the US regulator would be announcing plans to taper its monthly bond purchases. Deutsche Bank Credit Strategist Nick Burns told Bloomberg that the meeting could be one reason why companies were offering bonds. "Companies may be selling bonds now to lock in low yields before a decision is announced," he said.
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