The world's third largest energy solutions and transport firm Alstom SA announced today that for the first time since October last year, the company will put its bonds for sale. This is due to the plummeting of the cost of insuring Euro zone corporate debt against losses.

The power-equipment maker will attempt to raise Eur500 million or $652 million from six year securities. According to a source familiar with the sale, the securities are priced to yield 165 basis points above the mid-swap rate. Other BBB securities have average pricing of 140 basis points.

The Federal Reserve's previously announced plan to cut back on stimulus measures slowed down the credit risk rise.

Andrea Cicione, Lombadr Street Research Ltd.'s analyst, commented on the matter, "Fed officials have expressed their surprise at the extent of the market move, and have softened their tone on the possible exit strategy."

Credit risk rushed to a seven-month peak last month after Ben S. Bernanke, the central bank's chairman, said that policy makers may slow down their bond purchases within the year.