Companies rush to US bond market as Trump rally cuts borrowing costs

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Borrowers ‘strike while the iron’s hot’ to raise more than $50bn this week

Corporate borrowers are rushing to tap the US bond market, taking advantage of “eye-poppingly” buoyant conditions after Donald Trump’s election victory. Companies including heavy machinery maker Caterpillar, biopharma company Gilead Sciences and investment bank Goldman Sachs have raised more than $50bn this week, according to LSEG data.

“Spreads are at these eye-poppingly tight levels,” said one senior debt banker, adding that low borrowing premiums were spurring many companies to “pull forward” bond issuance they had planned for early next year. Banks, which typically move fastest to take advantage of tighter spreads, have featured heavily in this week’s borrowing spree.

 

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