- Investment-grade corporate bond sales of $962M thus far this year are expected to top $1T this month, making for the fifth consecutive year above that level.
- The sales come amid strong demand by investors - this year in particular, with IG debt higher by 9.49% in 2016 after losing 0.7% in 2015.
- Meanwhile, the extra yield investors demand over Treasurys has fallen to 1.35% versus 2.15% in February. The record-low of 0.97% was hit in June 2014.
- “Supply tends to follow demand so we expect robust issuance heading into the fall," says Wells Fargo credit strategist Nathaniel Rosenbaum. Indeed.
- ETFs: LQD, CORP, CSI, CRED, QLTA, COBO, QLTB, FCOR, CBND, IGS, IGU, IGIH, WFIG