UPDATE 1-U.S. corporate bond sales plummet in 2008

(Adds quote, details on sales declines, background)

NEW YORK, Dec 31 (Reuters) - U.S. corporate bond sales decreased sharply in 2008, according to Thomson Reuters data, amid a global credit crisis that cut investors' appetite for risky assets and hampered companies' ability to sell debt.

Sales of investment-grade bonds slid almost 35 percent from 2007 levels, and sales of junk bonds plunged more than 70 percent.

U.S. investment-grade bond sales fell to $645 billion from $986.8 billion in 2007. JPMorgan Chase & Co. (JPM.N) was the lead bookrunner for high-grade sales in 2008, followed by Citigroup (C.N), the data showed.

U.S. junk bond sales fell to $37.2 billion in 2008 from $135.6 billion in 2007, Thomson Reuters said. JPMorgan Chase also was lead bookrunner in junk bond sales, followed by Banc of America (BAC.N).

"There's no surprise that we saw a drop-off with the complete market meltdown," said Mirko Mikelic, a portfolio manager at Fifth Third Asset Management in Grand Rapids, Michigan. "Sales could still be tough in the first half of the year. Companies will still be paying a huge premiums."

Investment-grade corporate bond spreads rose to a record 656 basis points in December amid the yearlong global credit crisis and U.S. recession. Spreads have since narrowed to about 612 basis points as the Federal Reserve cut its benchmark rate target to near zero.

"Spreads are at ridiculous levels," said Mirko, who forecast a pick-up in defaults in 2009 as well as an increase in company bond sales toward the end of 2009. "If you're a good company, you should be able to issue, and you'll be able to do sales." (Reporting by Walden Siew, Editing by Leslie Adler)