US companies are rushing to borrow money in the bond market, bringing forward deals in case the country’s debt ceiling stand-off causes turmoil over the summer.
Highly rated companies have issued bonds worth $112bn so far this month, according to data from Dealogic, up from $46bn in May 2022 and more than triple the amount sold in April. Excluding 2020, when ultra-low interest rates sparked a $196bn borrowing frenzy, May corporate issuance this year is the highest in seven years.
Bankers who handle corporate bond deals say borrowers are making the most of a relatively buoyant market environment to tap investors now before any possible volatility erupts from the US government running out of cash — a scenario that could have cascading implications for global asset prices.