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First US corporate bond launched since Trump tariff announcement

BY Reuters | CORPORATE | 04/08/25 10:11 AM EDT

By Shankar Ramakrishnan

April 8 (Reuters) - Paychex (PAYX) announced the sale of a three-part bond on Tuesday, the first corporate bond offering to be launched since primary markets dried up after Trump imposed sweeping tariffs on U.S. imports last Wednesday.

Paychex (PAYX), a provider of human resources, employee benefit and payroll services, is using the bond to pay for its $4.1 billion acquisition of Paycor HCM (PYCR), announced in January.

Paychex (PAYX) is selling bonds with maturities of five, seven and 10 years. The decision to launch the bonds came against the relatively amenable backdrop of a rebound in stocks, said one syndicate banker.

(Reporting by Shankar Ramakrishnan; Editing by Kevin Liffey)

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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