Deere & Co. sold its first euro- denominated bonds in two years and Vivendi SA issued its first securities in eight months as yields on European corporate debt fell to the lowest in almost three weeks.
The cost of insuring against losses on European government bonds fell on speculation pressure from euro-region central bankers will force Ireland to accept an international bailout that would calm markets.
The Federal Reserve’s policies for stimulating the U.S. economy are allowing European banks to sell a record amount of dollar-denominated bonds to refinance about $1 trillion of debt maturing this year.
Companies sold the least amount of bonds in a decade this month as concern Europe’s sovereign debt crisis will slow the global economy drove up relative borrowing costs by the most since the aftermath of Lehman Brothers Holdings Inc.’s collapse.
Companies are borrowing the most in the loan market since 2008 to finance acquisitions worldwide, betting that they can quickly replace the debt with permanent financing as yields on corporate bonds fall to records.
MAN SE, Europe’s third-biggest commercial vehicle maker, is raising 750 million euros ($985 million) from its first bond sale since 2009 as car and truck company bond yields fall to the lowest in at least 16 years.