credit Markets

The US Corporate Bond Market Just Keeps Smashing Records

Is $2 trillion on the horizon for investment grade supply?

Firms are set to make June one of the busiest months ever for junk bond issuance, Bloomberg's Gowri Gurumurthy writes Friday, noting that high yield supply is set to top $45 billion by the end of this week. The latest flows data from Lipper shows both high yield and investment grade funds are still riding the Fed wave. Flows were more subdued in the week to June 17, but nevertheless, IG funds took in more than $4 billion, marking the 10th consecutive weekly inflow. Since the tide turned for IG flows during the second week of April, high grade funds have taken in nearly $60 billion on Lipper's data, reversing around 55% of the bloodletting during the panic. For high yield funds, last week marked a dozen weekly inflows in a row. Junk funds took in $1.24 billion in the week ended Wednesday, down markedly from the previous week, but inflows nevertheless. As Bloomberg's Gurumurthy goes on to note, "the new issue market is still cranking out deals, with seven priced Thursday for $3.9 billion". Those deals included Abercrombie & Fitch and PIK notes from Century Aluminum. As of Wednesday, this year's IG supply topped $1.13 trillion, which means 2020 has already eclipsed 2019
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5 comments on “The US Corporate Bond Market Just Keeps Smashing Records

  1. Interesting to me that some people now seem to expect perpetual support for corporate bonds.

  2. BC saying that the SMCCF has the potential to be as large as the PTTRX at its peak? That seems either factual, or not; because BC’s a good journalist, I assume it is factual. Of course RW’s tweet was pure snark.

    • Yeah, I mean, I just… I just didn’t particularly care for that column. It’s a late-twentysomething with a CFA positing an illegal conspiracy, and citing a Jeff Gundlach tweet in the process. You know? It’s cartoonish. I get that he has to publish compelling content, and also that he’s on the “opinion” side at Bloomberg. But my thing is that if a reputable, global news outlet is going to publish a piece alleging an illegal conspiracy, I’d prefer it be written by a lawyer or, preferably, a legal scholar. That’s all I’m saying. And then the Twitter thing… obviously, my Twitter account is sometimes profane, and very sarcastic, etc. But it’s a personal Twitter account under a pseudonym. These guys are professional journalists with verified (i.e., “blue check”) accounts, giggling like some school girls over a meme one of them made. I just can’t help but think: Get back to work, guys. People love your writing. I don’t, but in Robin’s case, tens of thousands of people do. So, you know, go write! haha.

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