Feast-or-Famine Credit Markets Lure Bargain Hunters to New Sales

Issuers are offering some of the largest new-issue concessions in years as corporate bond offerings compete to attract buyers demanding compensation for an expanding set of risks. The dynamic raises effective borrowing costs for companies, could narrow windows for successful issuance, and may put upward pressure on credit spreads and corporate funding costs in the near term.

Analysis

Issuers are offering some of the largest new-issue concessions in years as corporate bond offerings compete to attract buyers demanding compensation for an expanding set of risks. The dynamic raises effective borrowing costs for companies, could narrow windows for successful issuance, and may put upward pressure on credit spreads and corporate funding costs in the near term.