US corporate fundraising picked up sharply in the first half of 2024, but bankers are growing increasingly cautious over whether the revival will continue as uncertainty over the presidential election and the timing of interest rate cuts casts a shadow over the rest of the year. Fundraising activity jumped in the first half of 2024, with borrowing in US high-grade and junk-rated debt markets up almost 50 per cent to $1.3tn, according to PitchBook LCD.
However, in low-grade debt markets much of the recent issuance has been done to refinance existing debt, rather than new borrowing for mergers and acquisitions. While activity was “definitely” higher, said Citigroup’s Zogheb, “We’re comparing ourselves to ridiculously low volume periods. A small pick-up versus incredibly depressed activity levels in 2022 and 2023 is not what we were hoping for, and not what will sustain the kind of issuance volume we need.