Eighteen borrowers came with bond pitches Tuesday, a lineup that included UBS AG and Bank of Montreal. A private credit fund tied to Ares Management Corp also stepped up, and GSK Plc was out marketing paper to refinance borrowings tied to its purchase of Nuvalent Inc. Even with that mix, it was a surprisingly sparse session for a day that typically kicks off one of the busiest funding windows of the year.
This was the thinnest post-holiday turnout since 2020, when 14 issuers actually priced investment-grade offerings. The mood soured Tuesday as equities declined while oil moved higher, sharpening expectations that policymakers still have more work to do to corral inflation. Yields around the world sit at levels not seen since 2008, and persistent price pressures have investors preparing for additional tightening.
The day after Labor Day is normally a blockbuster. In 2024, that Tuesday set a record with 29 issuers tapping the market, and last year 27 companies sold a record tally of bonds. This year is still tracking big overall: US investment-grade issuance has reached $1.49 trillion so far, running 7.7% ahead of the 2020 pace that set the previous high, helped by heavy borrowing from companies building out artificial intelligence infrastructure.
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Syndicate projections remain lofty even with Tuesday's lull. Dealers have penciled in about $215 billion of US high-grade supply for September, a new high for the month if realized. Thanks to an unusually active run-up before Labor Day, $8.05 billion has already priced, and syndicate desks expect around $70 billion to print this week. For everyday investors, that mix of near-record supply and higher yields means more high-quality paper competing for attention, but also a market that can turn skittish when growth worries and inflation headlines collide.
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