Get ready for companies to race into the bond market in September

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Get ready: September is typically a big month for U.S. companies looking to borrow in the bond market

Once September rolls around, its go time for U.S. companies looking to borrow big in the bond market.

But for corporations, borrowing increasingly has been the lifeblood of doing businesses with the past decade seeing a record amount of debt borrowed at low rates in the high-grade bond market, partly to grow business but also to fund stock buybacks, mergers and acquisitions.The following chart shows elevated high-grade corporate bond issuance in the months of March and September over an eight-year stretch.

The Nasdaq Composite Index COMP, -0.13% was trading lower Friday, while the Dow Jones Industrial Average DJIA, +0.16% and S&P 500 index SPX, +0.06% were in positive territory and all three were on track to post a healthy weekly gain. Replacing older debt with new bonds at lower rates is one way to cut leverage, which also could help calm fears about the bulging BBB-rated bracket of high-grade bonds that are one step away from junk. Another way to shrink debt is to sell assets.

 

ขอบคุณสำหรับความคิดเห็นของคุณ ความคิดเห็นของคุณจะถูกเผยแพร่หลังจากได้รับการตรวจสอบแล้ว

U.S. investment-grade bond funds have received $160 billion of inflows so far this year, more than double the amount for a similar period last year However, 30% of all IG securities now bear sub-zero yields

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ประเทศไทย ข่าวล่าสุด, ประเทศไทย หัวข้อข่าว

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