Abreast of the Market: Institutions are piling into exchange-traded bond funds at the fastest pace on record, driven by forces reshaping the increasingly illiquid corporate-debt market and their desire to stay nimble ahead of expected rate moves.
The Outlook: Investors are obsessing over when the Federal Reserve will start raising short-term rates. Drawing less scrutiny is where rates will end up in the long run and how they’ll get there. But it’s time to start paying attention.
Pharmaceutical company Actavis PLC is expected to sell more than $20 billion in bonds as early as this week, a deal that would rank as the second-largest corporate bond ever and further propel bond sales this year into record territory.