Wednesday November 26, 2014

U.S. corporate bond tally could top $100 billion in September

U.S. corporate bond issuance is expected to top $100 billion in September, which would mark the third time it passed that threshold since at least 1995, finds Dealogic.

The Wall Street Journal cites new Dealogic research, which forecasts that “U.S. corporate bond issuance looks set to top $100 billion for September — only the third time it has crossed that monthly threshold since at least 1995.” Leading the charge is United Parcel Service Inc. with a $1.75 billion deal, along with billion-dollar offerings from several foreign banks. According to Andrew Karp, head of investment-grade debt syndicate at Bank of America Merrill Lynch, companies are tapping the market now in case jitters over Europe return and hike up borrowing costs. “The volume of debt sales is expected to slow in October,” the Journal concludes, “when companies retreat into earnings season, leading more issuers to cram their borrowing into this month.”

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