Puerto Rico, which had its debt cut to junk last month, set prices on $3.5 billion of general obligations after boosting the deal by $500 million as orders eclipsed the amount of securities offered. The bonds gained in initial trading.
A surge in interest rates and the worst currency rout since 2008 in developing nations from Russia to Brazil are inflating corporate borrowing costs as $1.5 trillion of obligations come due by the end of 2015.
Investors are pulling money out of exchange-traded funds that buy bonds in the U.S., with the biggest outflows from government securities as they shift into stocks, signaling a willingness to delve into riskier assets.
Emerging-market stocks rose a second day as the European Union promised emergency aid to Ukraine while U.S. and Russian diplomats held talks. The Standard & Poor’s 500 Index held near a record while oil declined.
Banco Santander SA and Danske Bank A/S are marketing additional Tier 1 bonds in the busiest week for issuance of the subordinated bank debt since Banco Bilbao Vizcaya Argentaria SA opened the market in April.