Moody's sees increase in bonds issued for non-refinancing reasons

By Jennifer Lanning Drey

Savannah, Ga., Sept. 23 - Moody's Corp. has seen a pick up in bond deals conducted for reasons other than refinancing, Moody's chief financial officer Linda Huber told investors during a Thursday presentation at the Goldman Sachs Communicopia Conference.

More specifically, Huber mentioned that merger and acquisition activity and backlog volumes are increasing around the world.

"The bond market is clearly where the action is right now," Huber told investors during the presentation in New York.

Positive drivers for the credit markets include renewed - although modest - economic growth, low interest rates and significant refinancing needs.

Huber also mentioned that the "wall of refinancing coming in the next two years," would continue to drive the bond market with trillions of dollars of financings expected through 2012.

The situation is similar outside of the United States with a very high component of financial institution debt, she said.

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