Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Palestinian platforms: Settlers storm Al-Aqsa Mosque complex under the protection of the occupation police
Palestinian platforms: The IOF detonated a booby-trapped robot east of the al-Zaytoun neighborhood, south of Gaza City
Syrian Defense: We call on all parties in Sweida to cooperate with security forces and exercise restraint
Al Mayadeen's correspondent: The Lebanese Army is continuing its investigations and will later announce any information that does not affect the confidentiality of the investigation
Al Mayadeen's correspondent: It has not yet been determined whether the detainees belong to ISIS or another organization
Al Mayadeen's correspondent: Around 10 people of different nationalities, including Lebanese nationals, were detained
Al Mayadeen's correspondent: The Lebanese army arrested a number of people in the Matn area of Mount Lebanon with possession it has not disclosed
Gaza Civil Defense spokesman: We have strong indications that there are martyrs, injuries, and trapped people in the Salah al-Din area
Gaza Civil Defense spokesman: Citizens should avoid Salah al-Din Street because anyone who approaches it is at risk of being directly targeted
Gaza Civil Defense spokesman: Reality is that there is a very limited retreat of the vehicles, with the occupation forces providing cover undeer fire up to Salah al-Din Street

Global corporate debt hits record $8Tln in 2024: FT

  • By Al Mayadeen English
  • Source: Financial Times
  • 28 Dec 2024 17:11
  • 3 Shares
4 Min Read

According to data from LSEG, corporate bond and leveraged loan issuance grew by over 33% from last year, reaching $7.93 trillion.

Listen
  • x
  • AP
    A man poses for a photo without showing his face as he counts US dollars at Ferdowsi street, Tehran's go-to venue for foreign currency exchange, in downtown Tehran, Iran, on Wednesday, December 18, 2024. (AP)

The Financial Times reported on Saturday that global corporate debt sales have surged to an unprecedented $8 trillion this year. This milestone highlights how companies have leveraged strong demand from investors to expedite their borrowing strategies, according to the Financial Times.

According to data from LSEG, corporate bond and leveraged loan issuance grew by over 33% from last year, reaching $7.93 trillion. Major corporations like AbbVie and Home Depot seized the opportunity presented by borrowing costs that hit their lowest levels in decades relative to government bonds. The activity eclipsed previous records set in 2021, with investor enthusiasm driving down borrowing expenses even before central banks started reducing interest rates from their historically high levels.

"Markets are firing on all cylinders, and then some," remarked John McAuley, Citigroup's head of debt capital markets for North America, according to FT. Initially, firms aimed to secure funding ahead of potential volatility tied to the US election, bankers explained. But after the post-election environment saw spreads tighten further following former President Donald Trump's decisive win, many companies chose to secure funding for the upcoming year or even further ahead.

Tammy Serbée, Morgan Stanley's co-head of fixed-income capital markets, observed this shift, stating, "Initially it was just about 'let's de-risk our funding for the year.' Then it was, 'Actually conditions look pretty attractive, why don't we just pull forward 2025 as well?'"

Read more: US dollar shares shrink in global reserves amid de-dollarization trend

Related News

Bank of England warns Trump tariffs could spark corporate defaults

US corporate loan delinquencies hit 8-year high: FT

AbbVie, for instance, raised $15 billion in February through an investment-grade bond sale to fund acquisitions of ImmunoGen and Cerevel Therapeutics. Other notable issuers included Boeing, Bristol Myers Squibb, Cisco Systems, and Home Depot.

The average spread for US investment-grade bonds briefly dropped to 0.77 percentage points following the election, marking the narrowest gap since the late 1990s, according to Ice BofA data. While spreads have slightly widened since then, they remain close to their tightest levels. High-yield corporate bonds experienced a more significant increase in spreads, though they also remain near multi-year lows.

Debt Surge

Despite narrow spreads, overall borrowing costs remain higher compared to three years ago due to elevated Treasury yields, with investment-grade corporate debt yielding 5.4%, up from 2.4% in 2021. These yields have attracted a record $170 billion in inflows into corporate bond funds globally in 2024, according to EPFR data.

Dan Mead, Bank of America's head of investment-grade syndicate, reflected on the remarkable issuance volume, calling it the busiest year for high-grade borrowing since 2020's pandemic-induced rush. "We put out an estimate for each month about what we expected supply should be... and every month the actual supply has exceeded [them]," he said.

Looking ahead, many bankers anticipate continued borrowing activity as firms refinance pandemic-era debt and pursue new financial strategies. Marc Baigneres, global co-head of investment-grade finance at JPMorgan, noted, "Activity will remain steady," but added that large-scale, debt-financed mergers and acquisitions could be a key factor to watch, the Financial Times wrote.

Some experts remain cautious about the outlook. Maureen O'Connor, global head of Wells Fargo's high-grade debt syndicate, warned, "The market is pricing almost no downside risk right now. With spreads priced to perfection, you are seeing idiosyncratic risk pick up." This raises concerns that the borrowing boom could slow if market conditions shift significantly.

Read more: Iran seeks payment systems with Muslim nations to bypass US sanctions

  • corporate debt
  • US
  • US dollar

Most Read

Hezbollah SG reveals war details on Al Mayadeen for the first time

Hezbollah SG reveals war details on Al Mayadeen for the first time

  • Politics
  • 8 Jul 2025
Major ambush in Gaza kills 6 Israeli troops, injures dozens

Major ambush in Gaza kills 5 Israeli troops, injures 14

  • Politics
  • 8 Jul 2025
Israeli soldiers are seen in Beit Hanoun ahead of an operation by the al-Qassam Brigades, undated (Al-Qassam Brigades Military Media)

'Israel' on blast as media exposes report discrepancies in Gaza ambush

  • Palestine
  • 8 Jul 2025
Yemen Navy sinks ETERNITY C ship, shares footage of operation

Yemen Navy sinks ETERNITY C ship, shares footage of operation

  • Politics
  • 9 Jul 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
The Freedom Flotilla ship Handala as it departs for Gaza, where it aims to break the maritime blockade at a port in Syracuse, Sicily in southern Italy on July 13, 2025. (AFP)
Palestine

Freedom Flotilla's Handala departs Sicily in bid to break Gaza siege

The container ship CMA CGM Laperouse, left, docks at the Georgia Ports Authority's Port of Savannah, Sept. 29, 2021, in Savannah, Ga (AP)
Politics

US shipbuilding woes deepen as tariffs, outdated policies backfire

Gaza war raises ethical questions for ex-Obama, Biden officials
Politics

Mercenary firm tied to Gaza war crimes hires Obama-Biden PR operatives

'Israel' targets children in Gaza collecting water
Palestine

'Israel' strikes Gaza kids fetching water, blames it on 'malfunction'

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS