US Blue-Chip Bond Sales Soar to $88 Billion, Busiest Week Since 2020

• US investment-grade bond sales reached $88.4 billion this week, the highest since May 2020, signaling a major borrowing spree.
• This early January tally is an all-time high, significantly exceeding dealer estimates of $70 billion for the period.
• Banks like Morgan Stanley and JPMorgan Chase & Co. forecast a record year for issuance, driven by lower borrowing costs for M&A and AI-related data center buildouts.
• Globally, bond sales topped $200 billion in the first week of the year, with Europe also experiencing record issuance.
• Strong investor demand, particularly for long-dated securities, and foreign firms (Yankee deals) tapping the US market are fueling the surge.

Why It Matters: Investment-grade firms are driving a record bond issuance surge, capitalizing on lower costs and high investor demand.