The recent flurry of new bond issues by US high yield issuers has led to a record issuance volume of $149bn for the quarter with a few days remaining until quarter-end. This beats the previous quarterly junk bond issuance volume of $128bn in Q2 last year when corporates rushed to raise capital in a bid to survive the impact of the pandemic.

American Airlines’ $10bn bond and loan sale, the largest ever by an airline and T-Mobile’s $3bn bond sale to fund the purchase of 5G airwaves are among the prominent new bond deals this quarter. Investors also saw debut bond deals from “at least two dozen issuer contributing $13bn to the supply” with footwear maker Crocs and cloud-based SaaS company Twilio among the debut issuers as per Bloomberg. Kevin Loome, portfolio manager of the U.S. high yield fund at T. Rowe Price said, “It’s really hard to keep up with the issuance. Now the pendulum is shifting a little bit toward more aggressive behaviors,” adding “It’s almost like an indigestion problem, and we’re getting to that point.”

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