The US investment-grade corporate bond market experienced one of its busiest periods on record in September 2025, with issuance ranging between $172 billion and $226 billion, driven by AI infrastructure spending, corporate refinancing, and merger-related financing. JPMorgan projects investment-grade supply could reach between $1.8 trillion and $2.1 trillion in 2026. As of mid-2026, option-adjusted spreads sat around 78 basis points, near historical lows, while average high-grade yields stood at approximately 4.8%. Kelsey Berro, portfolio manager at JPMorgan Asset Management, argues that demand from pension funds, insurance companies, and liability-driven investors is sufficient to absorb this wave of issuance without meaningful market disruption.
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