September US Junk Bond Issuance Nears Fifth Busiest Month Ever

The relentless onslaught of supply in the US junk bond market this month is expected to drive September volume to $51 billion later on Monday, making it the fifth-busiest month on record.

The torrent of supply this month has been spurred by attractive yields, low risk premiums — with spreads far below 300 basis points — and a resilient US economy against the backdrop of easing interest rates. September is poised to become the third busiest month on record by the end of Tuesday.