The US corporate bond market sees brisk activity on Thursday as 10 investment-grade companies aim to place bonds totaling $15.1 billion. The issuers include prominent names such as Ford Motor Co., General Motors, and Crédit Agricole SA, marking the start of an anticipated busy January.
Ford Financial plans a dual-tranche bond issuance worth $2.5 billion intended for general corporate purposes. General Motors Financial and Crédit Agricole will each issue triple-tranche bonds. The focus is particularly on financial and utility companies such as Crédit Agricole and Duke Energy Carolinas, which regularly raise funds on attractive terms.
The high familiarity of investors with these established issuers allows banks to market the deals quickly.
Issuers are apparently trying to get ahead of a potentially crowded bond market in January. Syndicates expect bond issuances between 175 and 200 billion dollars for the month, which could surpass the previous record of 190 billion dollars from January 2024. For the entire year 2025, forecasts predict an issuance volume of 1.4 to 1.9 trillion dollars, compared to 1.5 trillion dollars in 2024.
The demand for corporate bonds remains robust, but investors might bet that later issuances offer more attractive yields. "With a packed calendar and upcoming bank earnings, it might be worth being selective," said Samuel Wilson, portfolio manager at Voya Investment Management.
According to Bloomberg Intelligence, banks in particular could deliver a strong start to the year. With expected bond issuances of $175 billion, plus or minus $5 billion, January could be well above the ten-year average of $145 billion. However, political uncertainties, such as discussions about the debt ceiling, could weigh on the market.
Other issuers on Thursday include Ares Capital Corp., Athene Global Funding, and Dominion Energy South Carolina Inc., which also want to take advantage of favorable market conditions.
