Verizon Sells $49 Billion Bonds at T10+225

Verizon is selling $49 billion 10-year bonds priced at 225bp over the 10-year Treasury. The issue is twice oversubscribed. Investment-grade corporate bonds continue to be popular with investors as safe alternative to super low yielding Treasuries. The bond issue will help finance Verizon's buyout of Vodafone's 45% stake in Verizon Wireless. It sounds crazy, but why wouldn't you want to earn 5.2% annually on a super safe investment. Cell phone service revenues have only one way to go - up.