On a single day in late October 2015, Microsoft sold $13 billion in new bonds at an interest rate 3.22%, and a day afterwards First Data Corp. sold $3.4 billion in new bonds at a 7% interest rate.  The different rates reveal the difference between double A bonds (Microsoft) vs junk bonds (First Data).  The bond issuance industry is booming in late 2015, as companies increasing prefer that form of long-term debt vs traditional bank financing.  The issuance of corporate bonds is also an excellent leading indicator of the economy, so the bond boom bodes well for the US economy in 2016.  Another company, Johnson & Johnson has a pristine triple-A bond rating and plans to issue $10 billion within the next 30 days to finance a huge share-repurchase program.  Selling bonds (increasing long-term debt) to increase Treasury Stock (stock the firm owns of itself) is a bit controversial albeit increasingly common.  Defaults on junk-rated bonds issued by low-credit-worthy companies are however expected to rise in coming months.

Source:  Based on:  Mike Cherney, “Corporate Bond Market Heats Up,”  Wall Street Journal, November 2, 2015, p. A1.