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Investment grade bonds seen as key to M&A

Issuance is estimated to reach $750bn by the end of this year, providing a source of funding for acquisitions, Bank of America Merrill Lynch says

US issuance of investment grade bonds will reach $750bn by the end of this year, with more of the proceeds being used to finance acquisitions, Bank of America Merrill Lynch predicts

Jim Probert, head of Americas investment grade capital markets at Bank of America Merrill Lynch, said: "For investment grade companies M&A has been a solid use of proceeds and we are seeing signs of an increase."

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