Corporate bond sales have held up despite recent market volatility, and high-grade issuance is anticipated to be busy next week with a potential jumbo offering in the works.
May volume is currently about two-thirds of the $150 billion expected for the month, Bloomberg’s Michael Gambale reported. The week ahead looks to be active, but will likely fall short of the $50 billion needed to match estimates. Meanwhile, high-yield credit measures have weakened recently, though sentiment remains optimistic in primary markets.
“Credit markets felt softer this week as risk assets generally struggled until Thursday,” Barclays Plc strategists Bradley Rogoff and Shobhit Gupta wrote in a note Friday. “That softness might stand out after months of tightening, but in the grand scheme, it was very modest,” they said.
DT Midstream is marketing a debt sale and is holding investor meetings through May 25. It intends to use the proceeds from its $2.1 billion two-part offering to make a payment to DTE Energy. Even though investors yanked $1.7 billion from retail funds in the week ended May 19, according to Refinitiv Lipper, Thursday’s borrowers saw most of their deals price at the tight end of talk with healthy orders.