Lincoln National Corp. , the insurer that took a U.S. bailout, plans to sell notes as Moody’s Investors Service said it expects relative yields on corporate bonds to fall as corporate earnings grow and defaults decline.
Stephen Stanley, chief economist at Pierpont Securities LLC, has derided the Federal Reserve for downplaying improvement in the U.S. economy. Yet his 2.6 percent forecast for growth this year is below the midpoint in the central bank’s projection of 2.4 percent to 2.9 percent.
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.
Capella Healthcare Inc., the hospital operator backed by private-equity firm GTCR Golder Rauner LLC, is marketing debt as volatility in the stock market could raise relative yields on speculative-grade corporate bonds.