Forward delivery bond issuance smashes though previous record
Forward delivery bonds have already surpassed their annual record for issuance as issuers use the tool, along with taxable refundings, to replace the loss of tax-exempt advance refundings. Forward delivery bonds are attractive to both issuers looking for savings and investors seeking any incremental yield in an uber low-rate environment, Barclays PLC said in a Friday report. The underwriting process is similar to a typical refunding transaction, but with an extended settlement date. So far this year, $6.224 billion of forward delivery bonds have been issued, according to Bloomberg and Barclays data. That is up from about $2.724 billion in 2020 [...]