credit Markets

Congrats To Jay Powell! June Junk Bond Bonanza Shatters All-Time Record

Quite the feat.

Congratulations are in order for Jerome Powell. As of Tuesday, June 2020 is enshrined in the history books as the biggest month for junk bond issuance ever. That's right, folks. Thanks in no small part to the Fed backstop for the US corporate credit market, companies sold more junk bonds in June than any other month in recorded history. The one-month total is now $46.7 billion, besting the previous record of $46.4 billion set nearly seven years ago. Perhaps just as notable, 2020 boasts three of the top ten months for high yield debt sales. On one level, this isn't surprising. Companies need cash, after all. But the Fed's corporate credit facilities are what made it possible for so many borrowers to retain market access during the worst economic downturn in a century. The latest milestone will doubtlessly engender more wailing from the moral hazard crowd, whose lamentations persist three months on from the day the Fed first unveiled plans to backstop the market. Last week, investment grade supply for 2020 topped $1.13 trillion, meaning this year has already eclipsed 2019 for blue chip US debt issuance. Inflows into corporate credit have been robust as market participants lo
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2 comments on “Congrats To Jay Powell! June Junk Bond Bonanza Shatters All-Time Record

  1. Hoping H ….is being facetious on this post !!!

  2. From Milken’s perspective, handing over the “Junk Bond King” title to Powell might be better than his recent clemency

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