Corporate bond issuance has been exceptionally high in the first two weeks of 2026 as companies race to fund capex and M&A activity. It’s estimated that USD investment grade issuance could reach $140 billion by end of month, which is well above historical norms. Despite the record supply, credit spreads have remained resilient, supported by strong investor demand, steady labour conditions, and elevated coupon payments that need to be reinvested.

Our team is closely watching how markets react to the expected $140–220 billion of AI-related bond issuance later this year. If supply underwhelms, it could turn out to be an attractive opportunity as issues could come at compelling carry levels and be supported by strong corporate fundamentals.