INVESTORS' desire for the most liquid products possible spilled over into the corporate debt market this week as Ford Motor Credit launched the largest ever corporate global bond and General Motors launched a $1.6bn three tranche transaction which incorporated the first ever global long bond. Ford's $3.25bn financing, via bookrunner Salomon Smith Barney and joint lead Bear Stearns, set two records for the international bond markets. At $2.25bn (increased from $1.5bn), its five year fixed rate tranche was the largest single corporate global; and at $1bn, it also issued the largest ever seven year floater. General Motors' return to the offshore dollar market after a 10 year absence was an equally remarkable achievement. Lead managers Bear Stearns and Merrill Lynch brought $500m each of seven and 10 year paper, as well as a $600m 30 year bond - the first corporate global to match the maturity of the US Treasury long bond.
April 24, 1998