With the fiscal cliff looming, some of the country’s top companies are making moves that should inspire some confidence.
And that move involves corporate bonds.
This week, GE announced a $7 billion bond sale, the first kind by GE in five years, and a $5 billion refinancing of bonds reaching maturity next year. Other corporations are following the same path.
Dealogic reported last week that large companies sold $26 billion in investment grade bonds, while Oracle sold $5 billion at some of the lowest yields ever recorded.
In the face of the fiscal cliff, it would appear that larger companies are doubling down and ensuring that they’ll be prepared for it should the economy go into a tailspin.
Even if you don’t have billion dollar bonds at your disposal, confidence from the top should restore confidence in the marketplace.
Economists have confidence, too
Though CEOs recently sent a letter to President Obama, warning of the disastrous effects of the fiscal cliff, some economists from those same companies express more confidence.
A survey by the National Association for Business Economics shows that economists from Ford, DuPont, JPMorgan Chase and others are confident that the worst predictions are unlikely. A huge 80% of respondents are confident that the worst outcome is unlikely, while 55% say tax cuts will be extended next year for all taxpayers.