US investment-grade bond sales reached $130 billion in August, surpassing the $95 billion seasonal average recorded since 2019 by approximately 37%. This figure is part of a broader pattern, with year-to-date issuance reaching $1.681 trillion, up 26.9% from the same period last year. January alone set a single-month record with over $200 billion in issuance. The surge reflects companies’ urgency to refinance pandemic-era debt from 2020 and 2021, betting that current rates remain attractive relative to future increases. The fact that $130 billion moved in a traditionally slow month without causing spread widening indicates substantial dry powder sitting on the sidelines.
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