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US INVESTMENT GRADE BOND SUPPLY TO HIT EARLY THIS MONTH

ADMIN || 1st December 2025

A new week and month brings the prospect of new corporate bond supply. With credit conditions improved, corporate treasurers could come out of the gates with supply that weighs on spreads early in the week.

Syndicate desks are anticipating roughly $40 billion in December supply. Most issuance is expected in the first half of the month as issuers capitalize on the window between post-Thanksgiving and the Christmas holiday. The projection aligns with last year’s $41 billion total, but isn’t expected to approach the 2021 record of $61 billion. In that light, issuers may want to hit the market while it’s still hot meaning bringing supply sooner rather than later this week.

The spread on the Bloomberg US Investment Grade Corporate Bond Index tightened 3 basis point last week to +81 basis points as of Wednesday. That’s the tightest in about two weeks. And with stocks getting a lift from month-end allocations and cementing the S&P 500’s longest monthly winning streak since 2021 Friday and volatility calming that’s an environment for corporate treasurers to capitalize on.

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