What to Watch in U.S. Corporate Credit Markets This Week
- Expect busy primary markets if macro conditions hold steady
- Big bank earnings at the forefront, bond supply may follow
Pedestrians pass a Citigroup Inc. bank branch in New York, U.S.
Photographer: Mark Kauzlarich/BloombergThis article is for subscribers only.
Primary markets may be astir this week as borrowers look to take advantage of a stable credit tone. The broader macro picture remains in focus as the Federal Reserve weighs unexpectedly higher inflation. Also, quarterly earnings from bulge-bracket banks begin rolling in Monday, a precursor to investment-grade issuance.
Despite the fact that many companies remain in self-imposed earnings blackout periods, about $30 billion should still price in the U.S. high-grade market, according to an informal poll of primary dealers. That projection matches last week’s total, which exceeded expectations by about $10 billion.