Google (GOOG) Selling First Bonds

Google (NASDAQ:GOOG) announced it will be selling its first corporate bonds ever, launching a $3 billion multi-tranche offering.

Included in the issuance will be three-, five- and 10-year tranches, which are expected to be sold sometime later in the day. JP Morgan (NYSE:JPM), Goldman Sachs (NYSE:GS) and Citigroup (NYSE:C) are joint bookrunners on the offering.

The offering will be for $1 billion in each tranch.

A Google spokesman said, "We plan to use the proceeds to repay outstanding commercial paper and for general corporate purposes."

The bonds are rated Aa2 by Moody's Investors Service (NYSE:MCO) and AA- by Standard & Poor's. Settlement has been set for May 19.

Oracle (ORCL) Bonds Look Good if Spreads Come Under Pressure

Measured by Ebitda, analyst David Novosel of Gimme Credit writes that Oracle's (NASDAQ:ORCL) leverage ratio should improve as 2011 goes on, dropping to 1 times from the 1.4 times in 2010.

Novosel said, “Revenue is increasing at a double digit pace, while margins are moving significantly upwards. Free cash flow is enormous and leverage is dropping.”

“Spreads of +55 on the 2019 issue are not overly attractive, but given the strong credit profile, we think these bonds would provide excellent stability should overall corporate spreads come under pressure.”

On a relative basis Novosel sees the bonds of Oracle becoming more attractive as the year goes on.

Oracle closed Tuesday at $33.16, gaining $0.60, or 1.86 percent.

Bank of America (NYSE:BAC) Says Treasuries of All Maturities Lose 2.7 Percent in December

A Bank of America (NYSE:BAC) index released by the company shows that Treasurys of all maturities fell 2.7 percent in December so far.

Year-to-date yields have moved up by 2.79 percent since November 30, the largest boost since July 2003.

Concerning two-year yields, they pushed up the most since December 2009, rising from 0.49 percent.

30-year Treasury bond yields also rose to their highest levels since January 2009, the fourth straight month they increased.

So far in 2010 bonds have risen 4.94 percent.

Corporate bonds on average dropped 2.1 percent in December, but are up 8.2 percent for 2010.