What to Watch in U.S. Corporate Credit Markets This Week
- Debt issuers may come forward as earnings blackouts end
- High-grade dealers see lighter calendar despite steady tone
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Stable credit conditions and low funding costs could result in borrowers offering debt, but primary market players may hold fire as they weigh more quarterly earnings and the latest indications from Fed speakers regarding the size of the expected rate cut later this month.
Despite steady credit spreads -- they’ve only see-sawed by a single-basis point all month -- further fund inflows and a heap of companies set to exit voluntary earnings blackout, investment-grade syndicate desks are projecting just $20 billion of new supply this week. Last week’s muted activity could have something to do with the conservative outlook. A dealer survey had called for $30 billion while less than half that priced.