Ignore the market’s reaction to Teva Pharmaceuticals $TEVA issuing new debt. By issuing new debt instead of diluting shareholders through an equity raise, $TEVA is sending a positive signal to markets. Unlike companies whose stock rises and management issues shares – see $MNKD - the company is not taking the dilutive path. This signals management will not fleece shareholders. It also suggests management believes the stock is still cheap. TEVA is still on target to cut cost and lower debt levels. Issuing more debt (in the short term) but lowering overall debt could be viewed as a play on locking in lower interest rates.Teva at premarket: $TEVA, Teva Pharmaceutical Industries Limited / H1 The market’s reaction to the debt e.g. by oversubscribing to bonds, would signal a bullishness to the TEVA turnaround. Valeant $VRX raised debt and demand was so strong the bond sale was over-subscribed. That bodes well for VRX bondholders and investors. If TEVA bonds are over-subscribed, it is a bullish signal. Takeaway The new debt issuance may hurt existing debt prices. After that, the entire yield curve may fall, once markets absorb the bond sale.