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Corporate Bond Supply to Slow in Holiday Shortened Week

ADMIN || 19th January 2026

Dealers are forecasting about $25 billion in corporate bond issuance for this holiday-shortened week after a surge of supply to kick off the year.

That amount would mark a slowdown from the recent pace of new bond sales at less than half of last week’s issuance and after $149 billion of volume to open January. Most corporate issuers are expected to remain in earnings blackouts, leaving financials as the sector most likely to come to market.

US firms dominated issuance last week, accounting for 79% of borrowers, reversing last to last week’s dynamic when foreign names made up 57% of volume. 

The big six US banks drove activity, with Goldman Sachs, JPMorgan, Morgan Stanley and Wells Fargo selling a combined $38 billion of the $59 billion priced last week.

Goldman Sachs’ $16 billion six-part deal, the biggest ever from a Wall Street bank helped put last week’s volume in line with dealer forecasts of $60 billion.

While Goldman’s deal was well-received on Thursday with an order book that peaked at $60 billion and investors only receiving low-single-digit concessions, short and intermediate investment-grade funds drew $2.2 billion inflows in the week ended Jan. 14 versus $4.29 billion a week earlier.

The following are US fund flows for the week ended Jan. 14, compared to a week earlier, according to LSEG Lipper.

a.    Short and intermediate investment-grade bonds: $2.2b inflow vs. $4.29b inflow.

b.    High-yield notes: $371.3m outflow vs. $269.5m inflow.

c.    Treasuries: $1.12b inflow vs. $792.3m inflow.

d.    US leveraged loans: $1.14b inflow vs. $513.6m inflow: It is the biggest inflow since May 2025.

e.    Mortgage-related: $613.6m inflow vs. $215.3m inflow: Largest since July.

Still, spreads remain attractive for potential borrowers, having tightened across the spectrum last week heading into the holiday weekend.

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