Wal-Mart Claims the Bond Market

Wal-mart once again gets the title of lowest cost not only in average consumer goods produce but also, named the lowest borrowing costs. Furthermore, the company that has a recognizable rating of AA by Standard & Poor and Aa2 by Moody’s Investors.

Wal-Mart has sold $1 billion notes, due on April 2016, that yields a .6 percent. This percent is larger than similar treasuries by 30 basis points. Longer term bonds also expands with higher prices; a 1.25 billion valued bond due for maturity on April 2018 yields a 1.125 percent rate; a 10 year bond debt yields 2.55 percent; lastly the 30 year debt bonds yields a 4 percent return rate. These numbers has attracts many bond savy onlookers. This has taken many potential clients away from shorter term bonds which includes GlaxoSmithKline Plc, PepsiCo Inc and Praxair Inc; while for the longer term bonds it competes against Medtronic Inc. and Anheuser-Busch InBev NV.

Despite being a strong competitor in bonds, the company maintains a good record of cash balance sheet which qualifies it for positive rating on both Moody’s and S&P rating.

Written by: Victor To

Source:http://www.bloomberg.com/news/2013-04-05/wal-mart-bonds-fly-off-shelf-as-shoppers-stew-corporate-finance.html

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