U.S. Companies and Governments Are Hesitating to Sell Bonds Now
- In asset-backeds, two deals were pulled late last week
- At least three corporate borrowers stood down Tuesday
This article is for subscribers only.
Recent surges in bond yields are making companies and governments alike hesitate to borrow in a wide array of U.S. debt markets, signaling that the Federal Reserve’s expected rate hikes plus stagflation fears are already slowing the flow of credit across the economy.
State and local governments are scheduled to sell just $6 billion of bonds this week, about 17% less than the average for this year, and volume is down for the year. In the U.S. junk bond market, issuance for 2022 is the slowest in six years.