IG bond supply of US$713bn sets quarterly record high: IFR data

2 min read
William Hoffman

US high-grade bond supply surpassed US$713bn in the second quarter, setting a new record high for the asset class.

This is the second record breaking quarter of supply in a row after the first quarter of 2020 set the pace with US$485bn.

Issuers and investors regained their confidence after the Federal Reserve announced new corporate bond buying programs to support the market amid the Covid-19 pandemic.

A flood of bonds was unleashed, smashing monthly records and filling the orders of ravenous investors.

Prior to 2020, the largest quarter ever was in Q1 of 2017, when the market priced US$399bn of new bonds on the way to what became a record breaking year for IG volume.

This year is already on pace to surpass the US$1.33trn that priced in 2017, with US$1.199trn already completed year to date.

Biggest quarter for US IG supplyhttps://tmsnrt.rs/38eZ9Ek