Bonds
Debt Fund Managers Pack Laptops for Vacation as Bond Sales Surge
- Shift toward more summer sales began occurring in 2020
- Issuers avoiding election volatility may boost summer sales
Heavy investor demand for yield is powering sales across many markets.
Source: Bloomberg
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Companies have been borrowing heavily in US debt markets this summer, spurring money managers to pack their laptops when they head out on vacation during what was historically a quiet time of year.
For asset-backed securities, where the trend is starkest, sales have been averaging higher over the summer than for the rest of the year. For investment-grade US company bonds, this July has been the busiest since 2017, with $110 billion of sales through Monday and more lined up for Tuesday, including Netflix Inc.’s first offering as an investment-grade company. Leveraged loans are seeing their busiest summer in data going back to 2013.