Breaking records: strongest January ever in the US bond market
American companies appear to be rushing into the debt market.
Here are the amazing figures from the past month:
Historical record for January: Investment Grade corporate bond sales jumped 12% year-over-year, totaling $208.4 billion
The $200 million club: This is only the 6th time in history that monthly issuance volume has crossed the $200 billion threshold
Historical context: Only four previous months showed higher figures (March, April, and May 2020 – at the peak of the pandemic, and March 2022)
Well above average: For comparison, the average for January months over the past 6 years was 'only' about $153.5 billion.
The big picture: a global debt wave
The US is fueling a surge in global debt. Total public bond issuance worldwide rose 11% to a record $930 billion in January!
Corporations are borrowing more than ever.
Are they taking advantage of current interest rates before a change in direction, or do they simply need cash to continue growing?
When companies raise debt so easily, it indicates high market liquidity.
This eases fears of a credit crunch and shows that the market believes in the repayment ability of large corporations.
These numbers are just the beginning - for a full analysis of the opportunities and risks created in the market