Bayer's Bond Sale Targets Monsanto Acquisition Funds

The video discusses a unique financial offering that was not listed as a 144A but was heavily marketed to institutional investors, particularly insurance companies. The offering, expected to be around $15 billion, was not eligible for indexed bonds, which limited some index access. The roadshow for this offering was extensive, and the pricing ended up at 185 over Treasurys, indicating a strong investor appetite, especially from insurance companies and pension plans, for longer-dated bonds like the 30-year and 20-year parts.

What was the primary reason for not listing the offering as a 144A?

• To limit the number of potential buyers

• To avoid SEC registration

• To increase the offering size

• To target institutional investors

What was the initial premium over Treasurys for the 30-year bond?

• 205 basis points

• 185 basis points

• 200 basis points

• 150 basis points

How long was the roadshow for the financial offering?

• Six months

• Two years

• One year

• Three years

Which type of investors showed significant interest in the longer-dated bonds?

• Hedge funds

• Insurance companies and pension plans

• Mutual funds

• Retail investors

What is a key reason insurance companies prefer longer-dated bonds?

• Higher liquidity

• Higher returns

• Avoidance of ETF noise

• Lower risk