Key facts
- US investment-grade bond sales exceeded $1 trillion.
- This is the fastest pace of such sales since 2020.
- Low credit spreads and increased corporate borrowing, partly for AI spending, are driving sales.
- PIMCO's Sonali Pier highlighted the importance of credit selectivity.
- BNP Paribas' Meghan Robson stated private credit deterioration is slow and contained.
US investment-grade bond sales have surpassed $1 trillion, marking the quickest pace since 2020. This surge is attributed to historically low credit spreads and increased borrowing by blue-chip companies, partly fueled by substantial spending on artificial intelligence initiatives. Sonali Pier, portfolio manager for multi-sector credit at PIMCO, emphasized the critical need for selectivity in credit investments. Meanwhile, Meghan Robson, head of US credit strategy at BNP Paribas, noted that private credit deterioration is slow and contained, despite some firms like Cliffwater, Blackstone, and Partners Group capping fund redemptions.