NEW YORK: Investment-grade bond supply is expected to remain steady this week as companies are enticed by tight spreads and strong investor demand.
Syndicate desks are calling for US$15bil (RM63.14bil) to US$20bil (RM84.19bil) of fresh high-grade securities, with a greater percentage to come from corporate issuers after last week’s supply was dominated by banks.
That’s not to say banks won’t be represented. Much like an issuance surge that followed earnings reports three months ago, financial institutions are expected to continue to borrow.
JPMorgan Chase & Co, Citigroup Inc, and Wells Fargo & Co have yet to sell fresh bonds after presenting second-quarter results.
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