Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  AutoZone, Inc.    AZO

News SummaryMost relevantAll newsSector newsTweets

Risk Rally Extends To Corporate Bonds

share with twitter share with LinkedIn share with facebook
share via e-mail
04/17/2012 | 11:03pm CEST
   By Patrick McGee 

Corporate bonds are making a bit of a comeback following a weak and volatile beginning to the second quarter.

The CDX North America Investment-Grade Index, a proxy for risk sentiment in the corporate bond market, improved 3% in late trading Tuesday, while safe-haven Treasurys declined a bit, after Spain successfully sold EUR3.2 billion ($4.2 billion) of new bonds.

"There is some relief that Spain got through their debt auctions, and people are speculating there could be more help for them from the International Monetary Fund and others," said Kathy Jones, fixed-income strategist at Charles Schwab. "That eased up some of the risk-aversion from the day before."

Autozone Inc. (>> AutoZone, Inc.) brought $500 million of 10-year debt into the primary market. The triple-B rated borrower sold the bonds at 1.70 percentage points over Treasurys for a yield of 3.702%, marking a 0.05 point improvement from earlier price guidance.

Bonds issued in the last week, which trade more often than older paper, were showing modest improvement in Tuesday trading, according to MarketAxess.

Lowe's Cos. (>> Lowe's Companies, Inc.) 1.65% bonds due 2017 improved 0.04 percentage point, relative to Treasurys, to a spread of 0.72 point. Deere & Co. (>> Deere & Company) 0.875% bonds due 2015 also strengthened 0.04 point to a spread of 0.37.

That trend can lure investors into the primary market, helping companies to borrow at cheaper rates. However, new volume is expected to be subdued this month as companies focus on releasing first-quarter earnings.

Other actively traded bonds were mostly improving too, including bank debt generally perceived as riskier than industrial paper. Goldman Sachs Group (>> Goldman Sachs Group, Inc.) 2022 bonds, for instance, improved 0.11 percentage point to a spread of 3.42 points. Morgan Stanley (MS) bonds due 2017 strengthened 0.11 point to a spread of 4.09 points.

Jones said the corporate market remains in push-pull dynamic. "The U.S. economy is gaining traction, but deleveraging and the European debt situation is holding us back," she said. "Frankly, that's going to continue."

Average corporate bond yields finished Monday at 3.32%, just 0.05 point from the record low achieved in early March, according to the Barclays U.S. investment-grade index. But spreads rose to 1.88 points, versus 1.85 last week.

-By Patrick McGee, Dow Jones Newswires; 212-416-2382; patrick.mcgee@dowjones.com

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on AUTOZONE, INC.
08/21 AUTOZONE : Don'tPayAll Introduces Many More Promo Codes Including Autozone Disco..
08/11 AUTOZONE : IHOP to be demolished, replaced with AutoZone
08/07 HOME DEPOT : Penney’s Paves The Way With Radio
08/07 Region 4 Education Service Center Selects AutoZone as Exclusive Parts and Rep..
08/01 AUTOZONE : New AutoZone store near completion in Cheyenne
07/22 BUSINESS BEAT : Partners plan a Sam's Southern Eatery on McCann Road
07/18 HOME DEPOT : Pepsi Pops Up With Big Radio Play
07/17 AUTOZONE : Hamilton Boulevard AutoZone robbed; police searching for suspect
07/14 AUTOZONE : "Gentle giant" who handed over gun used in homicide sentenced to prob..
07/10 HOME DEPOT : Number One For The Past Eleven Weeks
More news
News from SeekingAlpha
08/18 10 Bargain Stocks To Buy Amid The Retail Sector Slump
08/15 Auto parts sector reeling after industry warning
08/07 How To Plan For Retirement At 45 With Dividend Stocks
08/04 This VCR Hasn't Gone Out Of Style
08/03 AutoZone And The Curious Case Of Debt, Value, And Online Commerce
Financials ($)
Sales 2017 10 863 M
EBIT 2017 2 086 M
Net income 2017 1 284 M
Debt 2017 4 858 M
Yield 2017 -
P/E ratio 2017 11,75
P/E ratio 2018 10,87
EV / Sales 2017 1,78x
EV / Sales 2018 1,73x
Capitalization 14 506 M
Duration : Period :
AutoZone, Inc. Technical Analysis Chart | AZO | US0533321024 | 4-Traders
Technical analysis trends AUTOZONE, INC.
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 27
Average target price 661 $
Spread / Average Target 28%
EPS Revisions
William C. Rhodes Chairman, President & Chief Executive Officer
William T. Giles CFO, EVP-Finance & Information Technology
Ronald B. Griffin Chief Information Officer & Senior Vice President
William Andrew McKenna Independent Outside Director
Earl G. Graves Lead Independent Outside Director
Sector and Competitors
1st jan.Capitalization (M$)
AUTOZONE, INC.-34.48%14 506
INCHCAPE20.58%4 526
AUTONATION, INC.-12.74%4 264