ADVFN - Advanced Financial Network.
HOME» NYSE » S » SWY Stock Price » SWY Stock News

Safeway Share News

 Safeway Inc. Stock Price
SWY Stock Price
 Safeway Inc. Stock Chart
SWY Stock Chart
 Safeway Inc. Stock News
SWY Stock News
 Safeway Inc. Company Information
SWY Company Information
 Safeway Inc. Stock Trades
SWY Stock Trades

Ford, American Express, GE Capital Lead New-Issue Bond Flurry

By Patrick McGee Corporate bond issuers wasted no time selling bonds while risk assets soared early morning Thursday, and with some of the rally fizzling out by day's end, the strategy looked prescient. Ford Motor Co. (F) garnered much of the attention as it tapped the investment-grade bond market for the first time since 2005 after officially returning to the high-grade universe last month. But it wasn't the largest deal. American Express (AXP) sold $2 billion of three-year bonds, some with a fixed-rate yield of 1.757%, and some with a floating rate of 1.40 percentage points over the three-month London Interbank Offered Rate, or Libor. General Electric Capital Corp. sold $2.25 billion of subordinated "preferred" notes. They offered investors a 7.125% yield for the next 10 years, at which point they convert to perpetual notes with a quarterly dividend, until GE redeems them. Along with smaller deals from Safeway Inc. (SWY), Viacom (VIA), and others, at least $8.3 billion of high-grade bonds were priced Thursday. That brought weekly volume to around $15 billion, easily surpassing the $10 billion forecasts at the start of the week. Ford, which received two rating upgrades this quarter, sold $1.5 billion of five-year bonds--its largest deal since April 2010, according to data provider Dealogic--at a yield of 3.008%, or 2.3 percentage points more than the five-year Treasury rate. When it sold five-year bonds in January, it had to pay 4.25%, or 3.54 points more than Treasurys. The much-lower financing cost reflects the savings Ford can attain now that high-grade investment accounts can own its bonds. Moody's Investors Service upgraded Ford and Ford Motor Credit Corp., which issued the bonds, to investment grade two weeks ago, following a similar move by Fitch Ratings. "Ford continues to be an improving story and investors want to be in on the action before the opportunity is gone--before the car drives away," said Jody Lurie, corporate credit analyst at Janney Capital Markets. The flight to safety stemming from renewed turmoil in Europe has created an attractive climate for borrowers to issue bonds, as the Treasury yields their borrowing costs are tethered to have plummeted. For investors, falling Treasury rates makes the extra yield on corporate bonds appear more lucrative: Barclays puts the gap between corporate and Treasury yields at 2.13 percentage points, compared with 1.82 a month ago. "Issuers are all set to tap the markets, it's just a question of when," Ms. Lurie said. "There are short opportunities, so when the window opens they rush in together." Issuance had temporarily dried up early in the week after the weak May jobs report and fear about the potential breakup of the euro zone. "We're in a manic state right now," said Michael Mutti, senior credit strategist at Stifel, Nicolaus Co. "When bad news comes out, everyone runs for the hills, but if there are no bad news items for a few days, corporate bonds get a strong bid." Write to Patrick McGee at patrick.mcgee@dowjones.com

Stock News for Safeway (SWY)
DateTimeHeadline
04/11/201409:40:43U.S. Hot Stocks: Hot Stocks to Watch
04/04/201411:12:42Blackstone Reaches $5.4 Billion Deal for Gates Global
03/17/201417:37:48Attorneys General Urge Major Retailers to Stop Selling Tobacco...
03/17/201416:00:51Major Retailers Urged to Stop Selling Tobacco Products
03/17/201415:31:14Attorneys General Urge Major Retailers to Stop Selling Tobacco...
03/17/201413:17:32Correction to Tobacco Products Story
03/17/201410:43:20Attorneys General Urge Major Retailers to Stop Selling Tobacco...
03/07/201416:53:55MARKET SNAPSHOT: Stocks End Mostly Higher; S&P 500 Notches Record
03/07/201415:03:30MARKET SNAPSHOT: U.S. Stocks Mostly Rise; Nasdaq Slips Into Red
03/06/201419:54:36Cerberus Agrees to Buy Safeway for $9 Billion
02/20/201416:54:51MARKET SNAPSHOT: Stocks Close Higher On Markit PMI, Deal Boost
02/20/201412:01:37MARKET SNAPSHOT: Stocks Rise, Shaking Off Weak Philly Fed Data
02/20/201410:45:08MARKET SNAPSHOT: Stocks Waver After Philly Fed Disappoints
02/19/201415:56:12MARKET SNAPSHOT: U.S. Stocks Fall After Fed Minutes
02/19/201415:18:30MARKET SNAPSHOT: U.S. Stocks Move Lower After Fed Minutes
02/19/201413:22:12MARKET SNAPSHOT: U.S. Stocks Abruptly Reverse Amid Nervousness
02/19/201410:53:22MARKET SNAPSHOT: U.S. Stocks Higher On Upbeat Earnings, Deal...
02/17/201408:52:36MARKET SNAPSHOT: Dividend Hikes, Consumer Clues Eyed In Week...
02/04/201413:00:37Wal-Mart to Spend C$500 Million on Expansion in Canada -- Update
01/13/201417:34:52Supervalu Chairman Stepping Down

Safeway and other New York Stock Exchange stock quotes are delayed by at least 20 minutes.
All other stock price data is delayed by at least 15 minutes unless otherwise stated.
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Contact Us | Copyright 1999-2007 ADVFN PLC. | Privacy Policy | Investment Warning | Data accreditations | Investor Relations

ADVFNADVFN ItalyADVFN GermanyADVFN FranceADVFN BrazilADVFN JapanADVFN UKADVFN US noad