Traders report expectations of outsized corporate bond issuance, with up to US$60 billion expected in US investment grade issuance, and reached $53 billion last week, with year-to-date (YTD) supply tracking at $1.3 trillion (4% YoY) according to Morgan Stanley analysis. The bank noted that investment grade funds gained net inflows of US$3.8 billion (up by US$49 billion YTD).
European IG new issuance hit €17 billion taking YTD volumes to just under half of US supply at €521 billion (up 12% YoY) while investment grade funds saw net inflows of US$1.5 billion over the week (+USD$46 billion YTD).
In US high yield, issuance reached US$6 billion last week, with YTD supply tracking at US$212 billion (5% up YoY) and high yield funds saw net outflows of US$250 million. YTD inflows for US HY were up by US$12 billion. European high yield Issuance reached €3 billion last week, with YTD supply tracking at €102 billion, an 11% increase, with funds seeing net inflows of US$1 million for the week, a US$7 billion increase YTD.
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