Frontloaded Credit Supply Expected Before Fed Meeting
- Investors see positive credit backdrop as risk gauge eases
- $25 billion to $30 billion of new high-grade bonds anticipated
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Fresh supply in the U.S. investment-grade market is expected to be front-loaded next week ahead of the Federal Open Market Committee meeting Wednesday. Traders will be watching for any clues on when the Federal Reserve may begin tapering talk.
Syndicate desks are calling for $25 billion to $30 billion of issuance, a slowdown from the $35.95 billion that priced this week.