(Jan 30): Sales of US investment-grade corporate bonds have smashed January’s prior record and exceeded US$200 billion for just the sixth month ever, part of a global debt-issuance surge as borrowers take advantage of reduced borrowing premiums.
Syndicate desks came into 2026 anticipating a record start to the year for US high-grade issuance, predicting at least US$200 billion for January. The month just exceeded September’s volume on Thursday, to rank in the top five months of all-time.
This month’s volume of US$208.4 billion is currently 12% above last year’s total, according to data compiled by Bloomberg News.
The borrowing binge has coincided with investment-grade spreads reaching their tightest level since 1998. Following the 2022 surge in borrowing costs, premiums ended each of the past three years tighter than the one before — the first streak of that kind since the early 1990s.
Financial issuers have dominated January’s issuance. Overseas-based lenders, the six biggest Wall Street firms and regional banks have collectively made up nearly 60% of this month’s high-grade bond sales, according to Bloomberg-compiled data. Goldman Sachs Group Inc led the slate with a record US$16 billion deal.
But as earnings season nears its conclusion, non-financial companies have started selling notes. Thursday saw AT&T Inc and International Business Machines Corp bring deals of US$6.5 billion and US$3.25 billion, respectively, to help the market cross the US$200 billion level for January.
See also: US trade gap widens from smallest since 2009 as imports rise
The US activity is part of the busiest month ever for global publicly syndicated bond issuance — with the total currently at US$930 billion. January opened at a record pace and has barely slowed, in the process crushing the old monthly record of US$842 billion set in January 2024.
Activity is expected to remain brisk near-term. Early calls by dealers see US$185 billion to US$190 billion of US investment-grade sales in February, implying double-digit growth from last year if forecasts are met. The monthly record of US$198 billion was set in 2024.
However, concerns about investor complacency have persisted and that could weigh on expected near-term issuance by tech, media and telecom companies.
Uploaded by Isabelle Francis
