U.S. companies rushed to the corporate bond markets on Monday as what is usually a seasonal fund-raising spree over the first few days of a new year gained extra momentum to get ahead of any further rise in Treasury yields - which would increase funding costs - after jobs data on Friday.
“With spreads nearing historic levels and the market ostensibly giving up on the hope of significantly lower risk-free rates, now looks like an opportune time for corporates to fund themselves,” said Connor Fitzgerald, fixed income portfolio manager at Wellington Management. In 2024, investment-grade rated companies raised $1.52 trillion, 26% more than the $1.21 trillion in 2023, making it the second most prolific year on record, according to Informa Global Markets data.
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