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US High-Grade Bonds: Record Sales Loom Amid Yield Spike
3 Sep
Summary
- Record September sales for high-grade US corporate bonds are anticipated.
- Current average yields for US high-grade notes exceed 5.5%.
- Companies are borrowing now to avoid potentially higher future funding costs.
Wall Street dealers were already anticipating a record September for high-grade US corporate bond sales. However, recent surges in yields may provide blue-chip companies with an even greater incentive to borrow now. This strategy aims to secure funding before interest rates potentially escalate further.
Average yields for US high-grade notes have surpassed the 5.5% mark. This elevated level prompts companies to act swiftly, leveraging current conditions to their advantage. The urgency stems from the expectation that borrowing costs could become more expensive in the near future.
Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.
