Morgan Stanley has reported that June issuance increased 13% year-on-year (YoY) following a 34% drop in April and 3% decline in May.
“Strong June issuance will lead to a better quarter than investors expected after the sluggish start,” write equity analysts Toni Kaplan and Greg Parrish.
This puts the aggregate level of issuance for the second quarter (Q2) down 7% against the previous year. Within those numbers, corporate issuance finished the quarter down 5%, largely on the back of loans.
Investment grade (IG) issuance was up 2% while high yield (HY) bonds were up 17%, finishing the quarter with a very strong month.
“Leveraged Loans weighed on corporate issuance, declining -28% for the quarter. Structured issuance declined 12% in Q2.” they added.
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