Fossil Group withdraws $300 billion 10-year bond offering - RTRS sources.
The CEO-trade of the past 3 years has been to issue debt and buyback shares or boost the dividend but the latest blip in the bond market may already be giving corporate issuers second thoughts.
The news from Fossil is just a headline at this point and there could be other reasons but the #1 reason bond issues are pulled is market conditions and the 30bp rise in yields in the past month along with wider junk spreads compared to this time last year and it's making much less sense.
High yield spread over 10-year Treasuries
At this point, it's just something to keep an eye but if they were worried about the Apple Watch, you'd think they would still be rushing to sell debt and raise cash.