$21 Billion Shows Two Bond Markets Aren't Equal

Bayer AG is finding it harder to sell debt in its home country than in the U.S., a telling sign of the respective health of the euro and dollar credit markets. The German chemical giant wanted to complete the financing for its $63 billion acquisition of Monsanto Co. — but it had to pay up to do that in Europe. Once the new issue premium — the extra yield investors are offered to buy the new securities over existing ones of a comparable maturity — was reduced by the underwriters, the bonds were eventually priced close to where Bayer's existing bonds are trading.