𝗗𝗲𝗯𝘁 𝗦𝘂𝗿𝗴𝗲 𝗦𝗶𝗴𝗻𝗮𝗹𝘀 𝗛𝗶𝗿𝗶𝗻𝗴 𝗕𝗼𝗼𝗺 𝗳𝗼𝗿 𝗖𝗿𝗲𝗱𝗶𝘁 𝗧𝗮𝗹𝗲𝗻𝘁 𝗶𝗻 𝟮𝟬𝟮𝟰
The US corporate bond market is on fire, with investment-grade companies issuing a record $153 billion in debt in January alone – the highest YTD figure in over 30 years, LSEG (London Stock Exchange Group) data shows.
According to Financial Times, this surge is fueled by companies locking in lower interest rates (compared to previous quarters) and investors keen on buying bonds before potential upcoming rate cuts.
𝗙𝘂𝗲𝗹𝗶𝗻𝗴 𝘁𝗵𝗲 “𝗦𝗼𝗳𝘁 𝗟𝗮𝗻𝗱𝗶𝗻𝗴” 𝗙𝗶𝗿𝗲
The rush into investment-grade debt is not just about locking in lower rates before a potential cut. It’s also fueled by optimism about the economic “soft landing” scenario. Companies banking on continued growth with manageable inflation are capitalizing on a window of favorable interest rates (vs previous quarters) to strengthen their financial positions and fuel future expansion.
Though the “soft landing” narrative may just be a whisper, its echo is reverberating through the Credit market, with the potential of generating a hiring wave in coming quarters translating directly into increased demand for Credit Research & Portfolio Management talent across the board. With investment-grade debt issuance at a record high, at Laz Partners we are expecting a surge in demand specifically for high-calibre IG Credit PMs & Research talent.
𝗖𝗮𝗽𝗶𝘁𝗮𝗹𝗶𝘇𝗶𝗻𝗴 𝗼𝗻 𝘁𝗵𝗲 𝗖𝗿𝗲𝗱𝗶𝘁 𝗯𝗼𝗼𝗺
Now that bonus season is approaching, the booming credit market offers an attractive opportunity set for Credit PMs & Analysts across the spectrum – and particularly within Investment Grade – to start considering their next career move, even more so given the reduced volume in expansionary credit hiring throughout 2023.