Think

Abbott Laboratories Debt Experiences Downgrade

Posted by Nick Buenaventura on Jan 12, 2017 1:55:50 PM

Abbot Laboratories (NYSE:ABT) saw a series of bond issues downgraded this past week from A2 to Baa3. This rating downgrade follows the aquisition of St Jude Medical Inc. (NYSE:STJ) on January 4th and the concerns that Abbott will struggle with deleveraging in the future. Since the acquisition and downgrade, ADI's CDS screener has shown Abbott Laboratories 5Y Sen USD XR14 CDS (green)  drop and then widen to 62 Basis Points. Over the same period, ABT's equity (grey) had been on the rise until a drop yesterday.

Click to enlarge.

Two of the downgraded bonds depicted in the chart, a 2.25%/20 (blue) and a 4.125%/20 (red), show a similar trend in their pricing. The 4.125%, however, was issued post-crisis in 2010, as opposed to the 5 year tenor of the 2.25% bond. The difference in demand is shown in their trading levels leading to their maturity in 2020.


Monitor the movement of Abbott and other downgraded securities by requesting a free trial of AdvantageData today.


 

Topics: debt, Abbott Labs, Downgrade

From the leader in fixed income pricing and data comes market analytics and information you need now.

AdvantageData is your fixed income solution for pricing, analytics, reports, and insight on approximately:

  • 390,000+ U.S. and international corporate bonds
  • Over 5,200 CDS reference entities
  • Over 12,600 syndicated loans
  • 1,500 ETFs
  • Over 100 equity markets worldwide
  • One platform 12 asset classes from debt to CDS to loans to mid-market
  • Used by top buy and sell-side firms worldwide
Why aren't you using AdvantageData?

Subscribe to Email Updates

Recent Posts