FILE PHOTO: U.S. flags fly out in front of the New York Stock Exchange is seen in New York, U.S., February 16, 2021. REUTERS/Brendan McDermid
At the same time, they have borrowed just $77 billion through floating-rate bonds in that period, a 33% decline.In particular, the issuance of fixed-rate junk bonds, which are issued by lower-rated companies, almost doubled this year to $108.8 billion, the data showed.American Airlines Group, Carnival Corp and T-Mobile were the big issuers of high-yield bonds this year.
U.S. companies hardest hit during the pandemic have been raising money aggressively over the past year by issuing bonds to meet their working capital needs and repaying existing debt. Analysts expect such borrowing to continue this year, until economies recover materially.