Lower Yields May Spur Heavy Borrowing of U.S. Top-Rated Bonds
- Wall Street expects around $25 billion of high-grade supply
- Leveraged loan sales to stay busy amid favorable conditions
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U.S. investment-grade bond supply is set to remain strong and steady next week, with Wall Street estimates calling for about $25 billion of new sales after macro concerns around inflation and rate hikes eased.
Credit markets reacted favorably to the Federal Reserve’s announcement that it will begin tapering asset purchases this month with no rush to raise interest rates. Borrowing costs remain dirt cheap for top-rated issuers, who are likely to take advantage and tap the market heavily in the weeks ahead of the Thanksgiving holiday, according to one syndicate desk.