For the first time since before the credit crisis, bond buyers are demonstrating more confidence in the U.S. banking system than in industrial companies as lenders fortify balance sheets while firms from Verizon Communications Inc. to Apple Inc. borrow record amounts.
International Lease Finance Corp.’s debt reductions and maturity extensions are failing to convince investors the plane-leasing unit of American International Group Inc. should stand on its own in a worsening global economy.
Banks around the world are stepping up bond sales, with lenders from Bank of America Corp. to Goldman Sachs Group Inc. accounting for the biggest share of dollar-denominated investment-grade deals in two years.
General Electric Co. is refinancing $5 billion of debt even as it expects to generate $100 billion of cash in the next four years, showing confidence in its ability to invest at returns four times its borrowing costs.
Less than three years after CIT Group Inc. completed its bankruptcy reorganization, Chief Executive Officer John Thain is persuading investors that its debt is as creditworthy as an investment-grade firm.