News Digest: Bond markets to remain bullish in February

February 16, 2024

News Digest:

The boom in US investment-grade bond sales is likely to continue in February as analysts expect the comeback in corporate acquisitions to be still below the ever-burgeoning investor demand for new debt, according to a report.

The report notes that Bank of America expects companies to sell between $160 billion and $170 billion of high-grade bonds in February, the most for the month in history. This would add to the nearly $190 billion offerings of fresh notes that came during January.


The offerings in February could get a further boost due to the comeback in M&A dealmaking and growing investor appetite for new paper. As for money managers, they would be looking at an opportunity to snap up bonds with higher yields before the Fed begins lowering interest rates sometime later in 2024. A study by Bloomberg says up to $322 billion of announced M&A transactions could be at least partially funded in the debt markets this year.

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