Why companies issued a record amount of debt I Charts that Count

Synopsis

Corporations sold a record amount of debt last week, marking the highest weekly issuance in history. This surge in corporate debt issuance is attributed to low borrowing costs, particularly in August when Treasury yields were at their lowest. The data, sourced from Deal Logic, shows a consistent rise in corporate debt since the financial crisis, with significant spikes noted in 2019. As of September, the total corporate debt issued for the year reflects this trend, with January through early September showing a notable increase. Investors are drawn to this debt despite low interest rates, especially when compared to other markets experiencing negative rates. This situation raises questions about the implications for future investments in the economy.