M&A Surge May Shake Credit Market Dynamics Off Balance: Ballard

The robust trends in M&A activity currently being experienced on both sides of the Atlantic are beginning to spark concerns of an impending increase in debt-funding supply amid a possible deluge of new issues. Any such acceleration in primary market offerings could cloud generally buoyant global credit market dynamics, writes Bloomberg strategist Simon Ballard.

While global M&A activity thus far in 2015 appears to have been largely funded by either cash and/or stock, investors are becoming increasingly wary of the fact that attractive capital market conditions could fuel a pickup of debt funding, thereby putting pressure on secondary market credit spreads.