Companies rush to issue bonds

Global bond markets have initiated issuance processes to raise funds ahead of the Fed’s interest rate decision. Global bond markets have witnessed intense private sector issuances ahead of the Fed’s interest rate decision. On Tuesday, at least 40 companies initiated issuance processes to raise funds from the high-rated bond market. Nearly half of these issuances were in the U.S., with the size of the U.S. issuances exceeding $36 billion. The size of the issuances in the euro zone was $20.1 billion. CreditSights Strategist Winnie Cisar said companies are front-loading bond issuances ahead of any economic data that could push U.S. yields higher. A survey of bankers advising on the issuances shows that $120 billion worth of bonds are expected to be issued in the U.S. this month. The expectation is for these issuances to be completed in the next few days, ahead of critical U.S. inflation data and the Fed’s interest rate decision.