T-Mobile kicks off $3 billion bond deal, extending a September borrowing spree by big companies

T-Mobile Inc. on Monday joined a deluge of big U.S. corporations borrowing in the bond market this September as Wall Street braces for another jumbo-sized rate hike from the Federal Reserve.

The three-part bond offering from T-Mobile US TMUS comes as new debt issuance this year in the U.S. investment-grade corporate bond market nears the $1 trillion mark, according to Goldman Sachs data. Rates volatility, sparked by the Federal Reserve and its plans to dramatically raise interest rates this year to fight high inflation, served as a key driver of the investment-grade bond market’s roughly 15% negative total returns in 2022 through August, according to Deutsche Bank data.

That was significantly less than initial price talk in the 220 basis point area, while robust demand also helped the borrower dial back borrowing costs on its 30-year and 40-year classes of bonds, according to Informa.

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