The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

US debt markets: Record high-yield issuance drives US debt boom

Investors are gorging on every part of the US debt spectrum, but especially high yield. Returns are high, volumes are at record levels and spreads are tightening. Is it too early to call the top of the market? Joti Mangat reports.

APPARENTLY HE’S NEVER had it so good. And that’s starting to make some people nervous. Henry Kravis, co-founder of Kohlberg, Kravis and Roberts, recently pointed the way for the private equity sector in his comment to Bloomberg in March that the financing achieved on KKR’s recent acquisition of San Francisco-based Del Monte Foods "was the most attractive financing that we have ever done".

The high-yield market in the US is booming. Volumes are flying. Spreads are tight, and dealers expect them to get tighter still.

After breaking issuance records in 2010, high-yield bonds are on pace for another record year, already reaching $133 billion by mid-May, compared with $302 billion for 2010. The $107 billion printed in the first three months of the year set a new quarterly record. According to Peter Acciavatti, managing director and head of JPMorgan’s high-yield and leveraged-loan credit strategy team, US investor allocations to high yield continue to grow, with domestic retail mutual funds and foreign institutional investors adding to already robust demand. "We are on pace to double last year’s inflow into US high-yield mutual funds.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree