Lots of companies are coming around to the idea of issuing extremely long-term debt, which has proven popular with investors, despite some recent hiccups. A stark example comes from Rabobank Nederland, which issued 100-year bonds recently. So did Mexico; Brazil is set to follow. Lloyds Banking Group recently sold $750 million in 40-year bonds, and this month JPMorgan Chase sold 30-year bonds.

Goldman Sachs (NYSE: GS) is now getting in on the act, as evidenced by its massive deal to sell $250 million worth of 50-year senior unsecured bonds. Demand was so robust it quintupled the size of the deal, on its way to raising $1.3 billion. The initial yield was in the 6.125 percent area.

One twist here is that two groups, Goldman Sachs and Lloyds, targeted retail investors, who are certainly hungry for high yields. This is a also chance to burnish its brand with the public. People were able to buy in denominations of just $25.

We will likely see other banks follow suit, seeking under-tapped reservoirs of financing. This is surely another sign of an unusual financing environment that presents new opportunities to get outside the box.

For more:
- here's a MarketBeat article

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