Bank bonds are the most expensive relative to the debt of non-financial companies since before European leaders crafted a $1 trillion bailout as concern eases the region’s sovereign debt crisis will spark more losses.
The Reserve is a six-bedroom, 11- bath Art Deco mansion in Los Angeles that Kristoffer Winters spent more than two years rebuilding and decorating down to its monogrammed bathroom towels. His asking price was $25 million.
Companies facing the biggest pension deficit since at least 1994 are selling bonds at the fastest pace in more than seven years to plug the hole, betting that future returns will exceed their borrowing costs.
Investors that helped companies from Microsoft Corp. to Wal-Mart Stores Inc. sell bonds at record-low borrowing costs are being punished on concern Federal Reserve efforts to stave off deflation will drive up yields.