Bond buyers are getting exhausted after absorbing trillions of dollars of corporate debt in the past few years.
While they still gobbled up a record-breaking $135 billion of U.S. investment-grade bond sales in July, they're getting pickier. They're now demanding the most extra yield to own the debt instead of government securities in two years.
“The high-grade bond market feels satiated with paper,” Bank of America Corp. analysts led by Hans Mikkelsen wrote in an Aug. 3 report. “What this market needs is a break -– either in the form of a slowdown in supply volumes or some healthy inflows.”
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
