Corporate USD Debt Issuance Surges in September

Corporate issuance of US dollar-denominated debt continued its strong momentum in September, with total issuance reaching US$112 billion. This brings the year-to-date (YTD) total to over US$1 trillion, surpassing the full-year total for 2025 and trailing only slightly behind the YTD figure from 2020. The technology, media, and telecom (TMT) sector remained the largest contributor, issuing US$44 billion in September alone, more than double the volume recorded in the same period last year.

Net supply of corporate debt also remained elevated, with September's net supply at US$69 billion, bringing the YTD total to US$573 billion. This level of issuance, combined with modest redemption activity, has pushed net supply well above the levels seen in 2025.

Reverse Yankee issuance, which involves non-US companies issuing debt in euros, amounted to €16 billion in September, lifting the YTD volume to €122 billion. This already exceeds the full-year totals recorded in most previous years and remains significantly higher than the level seen in 2025.

Financial sector issuance also saw a notable increase in September, with bank bond supply reaching US$99 billion. This was primarily driven by bank issuance, which totaled US$70 billion, nearly double the level from August. Senior bail-in instruments saw the highest issuance level since April, with US$42 billion printed. Other financial issuers, including insurers, have also contributed significantly to the YTD supply.

USD-denominated covered bond issuances have reached US$21 billion in 2026 YTD, marking an US$11 billion increase compared to 2025. This reflects the significant activity on the EUR primary market and issuers' efforts to diversify their currency exposure. Strong issuance activity is expected to continue, with the full-year total likely to surpass last year's figures.