MNI US Credit Weekly - Despite it All, Issuance Remains Heavy
Sep-11 19:24By: Douglas Conn and 4 more...
US IG UtilitiesUSUS IG TransportationUS IG Technology+ 11
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Executive Summary
- Spreads were tighter by 0.4bps, though 3 sectors were wider on the week. The Communications sector was the underperformer.
- In macro, credit markets were resilient despite heavy issuance and inflation readings for August that confirmed inflation’s persistence, adding pressure on the Fed to hike interest rates at next week’s FOMC meeting
- Fund inflows saw USD IG inflows while USD HY saw negligible outflows. In equities, the US faced a $3.9bn outflow while ROW saw inflows.
- Supply was just below $70B estimates, with 40 issuers pricing $67.6B, led by GSK’s $6.5b deal.
