bonds debt Trump

Blockbuster: Corporate, Bank Debt Sales Break Records In Busy First Week

How anxious are corporate management teams to get out ahead of Donald Trump's inauguration? Very. Or at least that's what the debt markets seem to be saying. For the first time since 2012, banks were pricing corporate bond deals on the first trading day of the year. Nearly a dozen firms sold roughly $20 billion in debt in the US last Tuesday - the most on record. Here's what that figure looks like in context: (Chart: FT) By the end of the week, supply totaled at least $73 billion (which as you can see below, is an outlier to say the least): (Chart: FT) But while the headlines focus on supply, BofAML reminds us that it's really all about demand. "It starts with the demand side of the equation," Dan Mead, the bank's head of US investment grade debt syndicate said.  "[Investors] came off a very strong performance in 2016 and came into the new year with large cash balances." This comes on the heals of the strongest year on record for debt issuance. 2016's total was ~$3.6 trillion. And while FT notes that higher rates and a relative dearth of mega M&A deals will likely mean we won't set a new record in 2017, IG issuance likely will hit a new all-time peak at close to
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1 comment on “Blockbuster: Corporate, Bank Debt Sales Break Records In Busy First Week

  1. Curt Tyner says:

    Business as usual! No problem can’t be solved with more,more and more again.

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