Microsoft issues debt for the first time

Microsoft became one of many companies taking advantage of favorable debt conditions this week when it issued $3.75 billion in debt--making this the first time it has ever tapped the bond markets. It is authorized to sell up to $6 billion. The firm's bond sale was led by JPMorgan and Morgan Stanley. Bank of America Securities and Citigroup participated.

The move reflects the surge in corporate bond issuance as of late. Declining yield spreads have ignited a frenzy of activity, making May a very busy month. It will not slow down anytime soon. Financial companies are expected to jump into the market soon. Reuters says that investment-grade corporate bond issuance could top $100 billion in May. That's the most since May 2008, when $143 billion in corporate debt was sold. We may see a pronounced bump in high yield issuance. This will certainly help underwriting fees of the top banks. 

For more:
- here's a Reuters article in Microsoft
- here's an article on the corporate debt market

Related Articles:
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Top banks tap investment-grade market

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