With higher rates, 2022 bond issuance projections keep falling – Bond Buyer

Market individuals are revising their current projections downward as rising Price of pursuits have stymied refunding and taxable quantitys and general market volatility has held some issuers to the sidelines. 

The tempo of issuance So far in 2022 makes it much less probably the market will hit earlier data seen in 2020 and 2021.

BofA Securities wAs a Outcome of the latest store to revise anticipateations downward As a Outcome of of dearth of refundings, with strategists Yingchen Li and Ian Rogow forecasting complete quantity in 2022 to be $50 billion Decrease than the $550 billion assumption they made On The prime of 2021.

“As a Outcome of of Fed’s tightening And greater costs, Even when widespread market costs go down significantly and yield curves go a lot flatter in 2H22, There’s probably not enough time for refunding quantitys To fulfill our $180 billion anticipateation for the yr,” equating to a $70 billion drop, they sassist in a report Friday. They anticipate new-money To enhance barely, placing their projections at $500 billion complete. 

Most corporations On The prime of final yr estimated complete issuance for the yr would fall between $390 billion and $550 billion, basing their forecasts on numerous elements, Similar to a Outcome of the mannequin new infrastructure regulation, Price of curiosity anticipateations and monetary coverage, worldwide financial restoration and future tax coverage.

Few predicted Russia would invade Ukraine, including one other primary macrofinancial concern to The combination, which Aside from humanitarian prices, has …….


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