Key facts
- US investment-grade bond sales have reached $1 trillion.
- This marks the fastest pace of such sales since 2020.
- Low credit spreads are a contributing factor to the surge.
- Increased corporate borrowing, fueled by AI spending, is driving sales.
- PIMCO's Sonali Pier emphasized the critical need for selectivity in credit investments.
Sonali Pier, portfolio manager for multi-sector credit at PIMCO, and Meghan Robson, head of US credit strategy at BNP Paribas, discussed the credit market on 'Bloomberg Real Yield.' Pier emphasized the critical need for selectivity in credit investments. This discussion occurs as US investment-grade bond sales have surpassed $1 trillion, marking the quickest pace since 2020. Factors contributing to this surge include historically low credit spreads and a significant increase in borrowing by blue-chip companies, partly fueled by substantial spending on artificial intelligence initiatives.