As the curtain closed on April, headlines touting the best month for US stocks since 1987 were ubiquitous. So were references to the seeming disconnect between equities' standout performance and the pitiable state of the global economy.
But arguably more noteworthy than the S&P's 13% monthly gain was the second consecutive month of blockbuster investment grade issuance.
In March, sales exceeded $260 billion, easily the most on record. Coming into Thursday, April had seen $252 billion in offerings. Thanks in no small part to Boeing's massive 7-part, $25 billion deal, April's total ballooned to $285 billion. We've now seen back-to-back record months for IG supply - in the midst of a modern day depression.
"Incredibly enough, despite how April 2020 will be the worst month for US business activity since the Great Depression, April’s issuance of US$-denominated IG corporate bonds is likely to set a new high", Moody's marveled, in a Thursday note, adding that "the Fed’s backstop credit facilities may facilitate recently announced issuance".
Yes, they "may" indeed. We have now seen more than a half-trillion in IG issuance in two months.
"April [was] the busiest month on rec
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