Corporate bond issues up 18.3%

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According to statistics published by the Bond Market Association, based on Thomson Financial Securities Data, corporate bond issues for the first five months of 2006, totaled $339 billion. This was an 18.3% increase over the same period in 2005.

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New issues were concentrated on investment grade bonds that made up 91.7% of the total — a 21.7% increase over the first five months of 2005.

Issuance of high-yield bonds (junk bonds) fell 10% compared to a similar period in 2005, amounting to only $27.6 billion.

High rates of new supplies of corporate bonds have exerted pressure on interest rates in the first half of 2006.