What to Watch in U.S. Corporate Credit Markets This Week

  • Risk appetite for junk ‘may be reaching its limits’: BofA says
  • Negative concessions signal stronger high-grade demand: PGIM
A pedestrian walks along Wall Street near the New York Stock Exchange.Photographer: Michael Nagle/Bloomberg
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The flow of U.S. corporate bond offerings looks set to continue this week, though risk appetite is soured by mounting worries about a deadly virus in China as the holiday shortened week starts.

In the corporate high-yield and leveraged loan markets, last week’s blowout debt sales for the buyout of Presidio Inc. could pave the way for more bonds and loans financing private equity deals.