Pfizer Sells $31 Billion of Bonds in Fourth-Largest Deal Ever

The video discusses a significant influx of supply into the high-grade market, with expectations of reaching 45 billion in sales by the week's end, aided by the Pfizer deal. It highlights strong demand in corporate credit markets despite credit crunch concerns, with 85 billion being over three times subscribed. The video also explains the Special Mandatory Redemption clause, which protects investors if a merger fails to gain regulatory approval, requiring Pfizer to redeem notes at 101 cents on the dollar.

What is the predicted sales figure by the end of the week, according to Bank of America?

• 30 billion

• 45 billion

• 100 billion

• 85 billion

What does the strong demand in the corporate credit markets indicate?

• A decrease in market supply

• A high level of investor confidence

• A potential credit crunch

• A lack of interest in investment grade markets

What is the subscription rate mentioned for the investment grade market?

• Five times subscribed

• Twice subscribed

• Three times subscribed

• Four times subscribed

What is the purpose of Special Mandatory Redemption in bond language?

• To increase interest rates

• To protect investors from interest rate risk

• To ensure higher returns

• To reduce market volatility

What happens to the notes if the merger does not receive regulatory approval?

• They are held until maturity

• They are sold at market value

• They are redeemed at 101 cents on the dollar

• They are converted into equity