Archive · 15 Aug 2025
September U.S. Corporate Bond Issuance Anticipated To Remain Strong
Imagine companies need to borrow money by selling bonds.
September is usually a popular month for this.
Even though the Federal Reserve might not cut interest rates as much as people hoped, companies still plan to sell many bonds.
This is because companies need money for their businesses, and they don't usually change their plans based on small changes in interest rates.
Last year, a record amount of bonds were sold in September.
Even though there is some uncertainty, this September is expected to be busy too.
September is expected to be a busy month for U.S. corporate bond issuance, despite uncertainty about Federal Reserve interest rate cuts.
Historically, September averages around $140 billion in investment-grade bond issuance.
Last year saw a record-breaking September with over $172 billion in new deals.
High inflation data has led to lower expectations for substantial interest rate cuts.
Corporate treasurers are unlikely to change bond issuance plans due to rate cut uncertainty.
- Who
- Corporate bond market participants and Federal Reserve.
- What
- A busy September is expected for the U.S. corporate bond market.
- When
- September
- Where
- U.S.
- Why
- Corporate treasurers' decisions to issue bonds depend more on financial needs than predicting Fed rate cuts.
Factors Influencing Bond Issuance
Corporate Finance vs. Rate Cuts
Impact of Federal Reserve Decisions
Factors Influencing Bond Issuance
Some analysts suggest that changes in interest rate cut expectations could potentially influence corporate bond issuance.
Corporate Finance vs. Rate Cuts
Corporate treasurers' bond issuance decisions are primarily based on corporate finance needs and are less influenced by anticipating Federal Reserve rate cuts.
- Historical September Avg. Issuance
- $140 billion
- Record September Issuance (Last Year)
- $172 billion
- Corporate Spreads (Avg. Change)
- 1 bp tighter this week
- Corporate Spreads (Current)
- 77 bps
- Bond Yields
- 4.94%