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US: Falling Corporate Bond Sales Are One of the Debt’s Few Positives
Top-rated U.S. corporations are expected to sell less debt next year, a bright spot for a high-grade market that faces a wide array of risks in 2022 as the lower supply coupled with strong demand can help sustain valuations. Most of the biggest banks are forecasting that sales will be down about 5% to 10% from 2021’s $1.4 trillion, meaning the money that keeps pouring into the corporate bond market will have fewer new securities to buy. That could help keep risk premiums which are already low by historical standards stay about where they are, according to fund managers and syndicate professionals. Falling issuance ... (full story)