Credit Market Investors are Watching for a Federal Reserve Pivot
- FOMC to meet next week with markets expecting a 50-bp hike
- No more than $5 billion of IG issuance is expected next week
Jerome Powell
Photographer: Al Drago/BloombergThis article is for subscribers only.
Credit market watchers are looking ahead to next week’s Federal Open Market Committee meeting where Federal Reserve Chair Jerome Powell is expected to announce a 50 basis-point hike.
Such a move would mark a divergence from a series of 75 basis-point hikes this year to help tame inflation. US corporate credit primary markets are mostly stalled heading into the rate decision. High-grade syndicates desks anticipate weekly sales won’t pass $5 billion, and its very possible that there could be no issuance at all.