Bond issues thrive in March

The volume of bond issues was the third largest on record in March, according to published reports. The data also revealed a shift towards more conservative bonds, specifically variable-rate paper. Last month, 791 new bond issues transpired, valued at $39 billion, according to Thompson Financial of New York. In March, $2.9 billion of new bond issues took place in the form of variable-rate paper, a shorting alternative to such bonds as auction-backed securities, which have become unstable during the recent market turmoil. Variable-rate paper issues climbed 250.1% compared with March of 2007. Refunding is also making a comeback, with 249 of issues in March belonging to refunds, totaling $8.3 billion. Sixty-two issues employed letters of credit, valued at $3 billion. Fewer bonds issued were insured. Of the 791 bonds issued in March, only 225 issues carried insurance, a drop of 50.3% from March 2007. Volume of bond issues for the first quarter, totaling $80.3 billion was down 25.3% compared to $105.8 billion over the first quarter of 2007.