Alstom SA sold bonds for the first time since October last year, with the cost of insuring debt against losses at the lowest level in two weeks. How easily investors digested the Federal Reserve's plan of reducing stimulus measures was also a factor of reduced credit risk.

Alstom, the top 3 largest power equipment maker in the world, sold 6-year securities and raised Eur500 million or US$652 million. A source who is familiar with the transaction said that the price to yield is more than the mid-swap rate at165 basis points. Also, according to the index data of Bank of America Merrill Lynch, this value is comparable to an average of 140 basis point spread, a value comparable with other BBB securities that had a similar rating.

Paris-based Alstom spokeswoman, Isabelle Tourancheau, was not available to comment regarding the bond sale. However, according to Andrea Cicione, Lombard Street Research strategist, "Fed officials have expressed their surprise at the extent of the market move, and have softened their tone n the possible exit strategy."