Chicago-based Gatx may sell debt

Gatx Corp., a Chicago-based company that leases railroad cars and other equipment, may sell debt as corporate bond offerings declined 57 percent amid investor concern the economy will slide back into recession.

Gatx filed a shelf registration with the Securities and Exchange Commission to sell debt securities and pass-through certificates on Aug. 17. The notes may be senior or subordinated, according to the filing.

Corporate bond sales fell to $5.13 billion in the past three days, a 57 percent drop from the similar period last week, according to data compiled by Bloomberg. While the pace of offerings has slowed as weaker-than-expected economic data has added to concern the recovery is weakening, investors expect companies to take advantage of some of the lowest borrowing costs on record.

"As long as rates remain close to all-time lows, the new issue calendar should be robust," said Rajeev Sharma, a money manager at First Investors Management.

Sales will "likely pick up" in September until corporations report earnings, said Sharma, who helps oversee $1.4 billion of investment-grade debt at First Investors in New York.

"It's a continued opportunity to refinance," he said.

The extra yield investors demand to own investment-grade corporate bonds instead of Treasuries was unchanged at 190 basis points, according to the Bank of America Merrill Lynch U.S. Corporate Master Index. Yields rose 5 basis points to 3.79 percent from 3.74 percent on Aug. 24, the lowest since the daily index data began in October 1986. A basis point is 0.01 percentage point.