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IPFS News Link • Stock Market

Brace For Buyback Tsunami Following Record Flood Of Corporate Bond Issuance

• https://www.zerohedge.com by Tyler Durden

... the real action was in corporate bond land where the last few days have seen an unprecedented borrowing binge.

As Charlie McElligott wrote in his daily note, "after nearly $40B of deals Tuesday, there was another $28.2B across 19 issuers and 34 tranches yesterday, with the early look showing 14 deals in today's pipeline already—just INCREDIBLE demand for Paper AND Duration."

This "supply firehose" also caught the attention of BofA credit strategist Hans Mikkelsen, who in a note titled aptly enough...

... wrote that US investment grade issuance for the first two days of this week stands at $60.6bn across a record (for any two-day period) 39 deals; this compares to the previous two-day record was 36 deals immediately after Labor Day in 2019.

Indeed, while the post-Labor Day week is normally one of the busiest of the year in debt capital markets, the past three sessions have been among the most active ever.


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