US Corporate Bond Market Heats Up

US Corporate Bond Market Heats Up

Lucia Silva
1 min read

US Corporate Bond Market Heating Up for Summer

Get ready for a bustling season in the US corporate bond market, as investment-grade companies scramble to refinance debts amid low borrowing costs and looming market uncertainties. With approximately $975 billion due in 2025, companies have already borrowed a substantial $867 billion in the first half of 2023, signaling the potential for a record-breaking year. Major banks like JPMorgan and Toronto-Dominion Bank have revised their issuance forecasts upwards, anticipating a total issuance of around $1.45 trillion.

Key Takeaways

  • Investment-grade US corporate bond sales expected to remain heavy over the summer.
  • Companies borrowed $867 billion in H1 2023, with JPMorgan raising its year-end forecast to $1.45 trillion.
  • Upcoming US elections and potential Fed rate cuts add urgency for issuers to act now.
  • JPMorgan and Toronto-Dominion Bank revised their issuance forecasts upwards.


The surge in US corporate bond issuance, driven by low borrowing costs and election-related uncertainties, impacts major banks and investors. JPMorgan and Toronto-Dominion Bank, key players, adjust forecasts upwards, reflecting confidence in market resilience. Short-term, earnings blackouts and holidays may temper activity, but long-term, continued low rates and refinancing needs will sustain high issuance. This trend benefits companies but could increase market volatility post-elections, affecting bond spreads and investor strategies.

Did You Know?

  • Investment-grade US corporate bond sales:
    • Investment-grade bonds are debt securities rated BBB- or higher by credit rating agencies, indicating a lower risk of default.
    • Typically issued by large, stable companies to raise capital for various purposes, such as refinancing existing debt or funding new projects.
  • Earnings blackout periods:
    • Times when companies restrict the release of financial information to prevent insider trading and ensure fair disclosure.
    • Typically surrounding the release of quarterly earnings reports, companies may limit communication with investors and the public.
  • Fed rate cuts:
    • The Federal Reserve (Fed) can lower interest rates to stimulate economic growth by making borrowing cheaper.
    • Rate cuts can influence the cost of borrowing for both consumers and businesses, potentially impacting the demand for corporate bonds and other financial instruments.

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