Bond and loan debts of American non-financial corporations have increased 30-fold in the past 50 years to $11.2 trillion, and are expected to rise by another $140 billion.
The Federal Reserve, in a statement, estimates that foreigners own approximately 27 percent of all US corporate bonds, making them the largest individual investor base in the market.
Bank of America expects, according to the Financial Times, that new high-yield corporate bonds will reach $47 billion, which is the end of the risk range that offers investors higher returns, which will hit the market in September, while Deutsche Bank sees it as The number could be even higher, as the issuance of junk bonds and leveraged loans is likely to rise to $60 billion, a level that was first breached in January of this year and exceeded again in March.
Jenners expects $140 billion in new debt, which is less than the $200 billion raised in September 2020, or the record $308 billion borrowed in April 2020, but it maintains the pace of issuance Hectic over the past 18 months.
And unlike 2020, when companies scrambled to secure capital to weather the pandemic downturn, 2021 saw more fundraising, as companies look to secure lower borrowing costs over a longer period of time, or borrow to fund acquisitions, share buybacks and reward shareholders.
US stock indices fall in early trading