The corporate bond market is catching a huge gust of wind in its sails on Tuesday, as companies are lining up in droves to raise financing for everything from funding acquisitions to buying back stock.

Swiss pharmaceutical company Roche Holding AG (ROG.VX) is in the market via Roche Holdings, Inc., with four-part bond offering that market participants expect to total at least $1 billion, but likely far more.

The company is seeking financing in part to fund the approximate $40 billion cost of acquiring the outstanding 44% stake in U.S. biotech company Genentech Inc. (DNA), in which it already holds 56% interest.

Honeywell International Inc. (HON) launched a $1.5 billion two-part offering, with five-year notes offering a risk premium of 225 basis points over Treasurys and 10-year bonds at a spread of 237.5 basis points.

Atlanta-based Coca-Cola Enterprises Inc. (CCE) and chemical maker DuPont Co. (DD) are currently marketing bond deals.

And transportation company Union Pacific Corp. (UNP) is raising money in part to fund its share repurchase program.

Companies are rushing to obtain financing in an issuer friendly climate - low rates combined with heavy demand.

"Today's action will go toward general corporate purposes as we take advantage of the current attractive rates," said Anthony R. Farina, DuPont's director of global public affairs.

Some investors spurned by the plunge in stock prices have turned their backs on equities and are finding an alternative in the debt markets, where returns are exponentially more promising than those in the stock market.

"The bond market has become a more viable investment option than the stock market," according to Bill Larkin, fixed-income portfolio manager at Cabot Money Management.

Larkin added that doubts about the government's rescue package and bailout plan have caused a slide in stock prices, and portfolio managers have moved away from equities and toward bonds. "Money is looking for a safe place to go, and higher-quality corporates outside of banks and finance are benefitting from that."

Last week, $15 billion of fresh corporate debt was snapped up, confirming that the corporate bond market is very much open for business, and cash-heavy buyers are clamoring for more.

The corporate bond sector has recently outperformed other areas of the credit markets and is currently providing a cushy issuing environment for sellers via low Treasury yields amid heavy investor demand.

Moody's Investors Service's capital markets research group said Tuesday they expect U.S. corporate bond issuance to grow by 7% in 2009, propelled by a successful FDIC-backed short-term issuing program and attractive financing costs for borrowers.

So while companies that were shut out of the new-issue market just a short while ago are now able to obtain financing at reasonable cost, investors are right behind scrambling to get a piece of the action.

With diversification key, money managers are also benefitting from some slight competition.

The $700 million Union Pacific deal includes a change-of-control provision, which allows bondholders the option of selling back their bonds at a premium to the company in the event of a takeover or sale.

In late 2006 and early 2007, bond buyers demanded covenants be included in the language of bond contracts, offering holders protection against the biggest threats back then - leveraged buyouts and ratings downgrades. But during the current issuing frenzy, covenants are being considered more of a bonus than a necessity.

"That's a pendulum that swings both ways," Larkin said. "They're added to sweeten the deal; The company is adding tidbits to make it more attractive and get my attention." Larkin said the provisions put a positive twist on standout issues in a seemingly competitive market.

-By Kellie Geressy; Dow Jones Newswires; 201-938-2050; kellie.geressy@dowjones.com