Not the start of a trend

Veolia’s offer to sell inflation-linked bonds seems to be attracting lots of attention. And for good reason. It would be the first company to issue such debt denominated in euros. And based on experience in the European sovereign and US debt markets, there is a ready base of investors hungry for bonds that insulate buyers against inflation. But given low inflationary expectations, Veolia might be better off locking in current rates. There are several reasons why Veolia would want to issue such ...