Spreads shrink close to record lows in US market

Coca cola coca-cola from Alamy 29Apr21 575x375
By Jon Hay
29 Apr 2021

US corporate bond issuance slowed to a trickle this week, due to earnings blackouts, leaving the market with $52bn of deals to show for April, a far cry from last year's $234bn at the height of coronavirus safety fundraising.

Five borrowers raised $5.3bn this week. The lack of supply means the technical bid for high grade credit remains strong.

“The combination of low levels of supply this week and consistently high cash inflows has helped credit spreads compress to near-record tights,” said David Jones, director, syndicate at NatWest ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial