Pipeline for Acquisition Financing Shrinks, in Boon for Credit
- Over $67 billion of debt supporting buyouts sold in Q1 of 2024
- US election, bond yields, interest rate decisions drive sales
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Companies have fewer acquisitions to refinance in longer-term debt markets now than they did a few months ago, which could help boost bond returns this year.
More than $67 billion worth of acquisition debt was sold in the first quarter — roughly double the volume seen in the same period in 2023 and 2022 — leaving at least $60 billion to be funded over the remaining nine months, according to filings and reports compiled by Bloomberg News. That pipeline includes mainly bridge loans — short-term debt used to help fund acquisitions that is later replaced by longer-term, less expensive corporate bonds.