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Huge Wave of Upgrades Is Surging to U.S. Corporate Bond Market

  • BofA says most high-grade debt since 2010 poised for boost
  • Netflix, Kraft among firms headed toward investment grade
Netflix Illustrations Ahead Of Earnings Figures
Photographer: Gabby Jones/Bloomberg

Netflix Inc., The Kraft Heinz Co. and other bond issuers look like they’ll get swept up in the biggest wave of credit-rating upgrades the U.S. has seen in more than a decade -- a sign the recovery from the pandemic is accelerating.

The Covid-19 recession had spurred the most downgrades since the 2008 financial crisis, but corporate balance sheets have improved markedly since then. The amount of investment-grade debt being evaluated for an upgrade has swelled to $203 billion, the most since 2010, Bank of America Corp. strategists led by Yuri Seliger wrote in a report Tuesday.