As of October, U.S. corporate bond issuance is on track for another record year — $1.45tn, divided between $1.12tn investment grade and $333.4bn high yield. 2014 will be the fifth consecutive year of $1tn-plus total issuance. It will more than double from $707bn in 2008, and higher than the $1.13tn in 2007. High-yield in particular is having a field day. It will have more than doubled from the previous high of $146.6bn in 2006, and many times over $43bn in 2008.
Enjoy the party now. When the day of reckoning hits — whenever that is — it is setting up for an unpleasant hangover.
