During the Finance Academy session last week, we had the privilege of hearing Mr. Dan Susik speak. Mr. Susik is the Senior Vice President, Finance and Treasurer at Ryder, a transportation and supply chain management product company based in Miami, FL. He graduated from Rutgers College with a BA in Economics and holds an MBA from the University of Michigan.
Mr. Susik presented an overview of corporate bond issuance. As a Corporate Finance student, I found his insights into the process quite helpful. It was also interesting for my Investment track classmates to hear about the corporate bond issuance process from the corporate side, compared to the view of the issuing bank and the potential investors. The process for issuing corporate debt requires quite a bit of upfront research, including tracking key economic announcements during a pre-announcement process.
In the current economic environment, corporate yield spreads are some of the highest – even compared to twenty years ago. The Treasury yields are at all time lows. Therefore, it is possible that corporate credit spreads could go lower while the Treasury yields remain so incredibly low. Mr. Susik reminded us that when raising cash, debt is cheap and equity is quite expensive. I found the presentation to be quite helpful as I prepare for graduation in May and start my Corporate Finance career.