U.S. Junk Bonds Set $432 Billion Record in Rush to Beat Rates
- 2021 high-yield issuance has topped 2020 for busiest year ever
- Refinancings, new issuers, return of acquisitions boost sales
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U.S. high-yield bond sales reached an annual record of $432.4 billion on Tuesday as companies rush to lock in low coupons while they still can.
Cheap funding costs have unleashed a prolonged pile-on of debt issuance, and borrowers have been hurrying to take advantage of the opportunity before the Federal Reserve eventually raises interest rates. That could come sooner than expected amid inflation pressures, though Federal Reserve Chair Jerome Powell is still preaching patience as of last week.