The Late-Year Corporate Bond Blitz Is Finally Set to Abate
- Investment-grade issuance expected to dip to $5 billion
- High-yield pipeline thin, while about 20 loans due to price
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Corporate debt sales are finally expected to cool next week due to a typical year-end slowdown, though cheap borrowing costs may be too tempting to bring a complete freeze.
Wall Street syndicate desks are projecting a trickle of about $5 billion of high-grade bond issuance after volume surprised to the upside this week, topping $20 billion. Banks, which tend to sell debt when credit markets are especially borrower friendly, have made up about 75% of this month’s supply -- and it wouldn’t be surprising to see a few financial deals emerge in the coming days.