Corporate bond issuance is on pace to decline 14.3 percent this year. This comes at a time when corporations have been aggressively buying back shares. With six months in, US corporate bond issuance remains soft. In June, corporations issued $73.2 … Continued
Based on the first five months, US corporate bond issuance is on course for another down year. Particularly noteworthy is the collapse in issuance of junk bonds. Investors have switched to risk-off. The pace of US corporate bond issuance has … Continued
In 1Q22, US corporate bond issuance was down 14.5% y/y, with high-yield collapsing 68%. This took place even as HYG, along with LQD – already under sustained pressure – are clinging on to crucial support. In the first three months … Continued
As S&P 500 earnings staged massive recovery from post-pandemic lows, buybacks are back in fashion. Thus far in 4Q, the index is already up north of nine percent, pricing in a lot of seasonality optimism. As things stand, the index … Continued
Corporate bond issuance was strong in the first half. High-yield, in particular, is on course for yet another record year. The Fed essentially provided a backstop to corporate bonds in March last year, setting ablaze risk-on sentiment. Corporate profits are … Continued
The FOMC meets this week. The Fed already has unlimited QE in place. Not much is expected to come out of this meeting. If anything, aware that low rates are needed, Mr. Powell may drop a hint or two that … Continued
US corporations continue to aggressively issue debt in the bond market. Even amidst this supply, demand remains good. Both LQD and HYG are near their record highs. Besides the Fed essentially acting as a backstop, corporate boards are probably also … Continued
There are four more months before 2020 is out, but US corporate bond issuance already set a new record. The Fed’s new policy under which it buys corporate bonds – both investment-grade and high-yield – has lit a fire under … Continued
Already-levered US corporations are levering up even more. The first half this year already matched issuance of last year. This is taking place even as corporate debt is at record high, with several metrics well into extended territory. Momentum in … Continued
S&P 500 companies spent $198 billion in buybacks in 1Q, up 9.3 percent sequentially. Given the uncertainty surrounding stocks and the economy, this must come as a nice surprise. Concurrently, there has been a jump in recent months in C&I … Continued