Recession Anxiety? Not in the Credit Market
As economists and yield curves warn about a potential downturn in 2023, the resilience of corporate bonds may help engineer a soft landing.
No one’s panicking in the debt market yet.
Photographer: Keystone Features/Hulton Archive/Getty Images
The corporate debt market is still doing its part to keep America out of a recession.
As economists and yield curve indicators warn about a potential downturn in 2023, the signs of any kind of credit panic remain conspicuously absent from primary issuance markets and corporate spreads. Amazon.com Inc. is among 19 investment-grade companies that sold bonds this week, closing out November at about $104 billion in issuance, according to Bloomberg Intelligence data, in what’s typically one of the last spurts before bankers and investors start checking out for the winter holidays.