US Corporate Credit Supply Hits Record High in August
The US dollar corporate credit supply reached its strongest point on record in August, surpassing the previous high set in 2020. According to ING Think, a total of $116 billion was issued in August, up from $84 billion in July and well above the $77 billion printed in August last year.
The strongest corporate issuances were seen in the Technology, Media, and Telecommunications (TMT) sector, which accounted for $43 billion of the total. This is part of a larger trend of increased activity in this sector, with TMT issuances reaching $330 billion so far this year, up 210% from last year.
In contrast, consumer sector issuances are lagging behind last year's levels, down 51% to $45 billion. However, the long end of the curve remains a popular choice for issuers, with $235 billion worth of bonds issued in maturities of 17 years and longer so far this year.
In other news, financial supply slowed down in August, with just over $58 billion printed. This is primarily due to a slowdown in bank activity, which dropped from $55 billion in July to $39 billion last month. However, banks' year-to-date USD supply still reached $511 billion, a staggering $100 billion ahead of 2025's YTD total.