• Blue-chip companies in the US sold a record $172 billion of bonds in February after falling yields spurred investors to buy debt and pushed companies to take advantage of relatively cheaper borrowing costs.
• The sales topped the prior record for February of $150.9 billion, set last year, according to data compiled by Bloomberg News. Issuance for the entire year has surpassed $361 billion, also a record. The sales come on the heels of the busiest week in nearly two years, driven in part by a deluge of bonds sold to fund mergers and acquisitions. And more bond sales are likely on the way.
• Lower borrowing costs are driving corporate finance chiefs to move forward with new bond sales after the average investment-grade bond yield dropped to 5.37% on Friday and have been trending down since October. The average spread for high-grade bonds, meanwhile, traded at the lowest level since November 2021 last week despite the gush of supply.