US Companies Set Record for Debt Issuance Amid Growing Risks

American companies are setting new records for debt issuance, aiming to mitigate potential future risks.

According to the London Stock Exchange Group (LSEG), the first week of September saw an unprecedented 29 investment-grade bond deals in a single day, the highest number ever recorded. The following day, another $73 billion in debt was issued, marking the largest volume in two decades.

The record-breaking activity spans various sectors, with major issuances from companies like Ford Motor Credit, Target, and Uber.

While early September is usually a peak period for corporate borrowing, the surge is attributed to concerns about upcoming elections and other geopolitical uncertainties.

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Dan Mead, head of Bank of America Securities’ investment-grade syndicate, explains that companies are advancing their debt issuance to reduce risk in anticipation of economic reports, Federal Reserve decisions, and election-related volatility.

Maureen O’Connor, global head of investment-grade syndicate at Wells Fargo, adds that firms are also preparing for a potential recession.

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Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.