US Dollar Credit Supply: Decent supply in September
Supply in September was substantial, particularly in financials. However, we still see financials running behind the previous year-to-date supply, at just $340bn. Corporate supply is now sitting at $546bn YTD, approaching our forecast of $650
Executive summary
Corporate supply closed just above $46bn in September, mostly in line with the same period last year. Corporate YTD supply now amounts to $546bn. Net supply will still be low, but we revise our forecast modestly higher to $650bn on the back of slightly heavier supply seen in the first six months of this year. But we still expect supply to remain slow in the coming months as large prefinancing has been done and many issuers will be looking forward to potential rate cuts in 2024.
Corporate issuance was mainly driven by Utilities, Industrial & Chemicals, TMT, and Consumer, with issuances ranging from $7bn to $10bn. Nonetheless, Consumer and Industrials & Chemicals issuance almost halved compared to September 2022. Despite this, all sectors are running ahead of last year on a YTD basis with the exception of Real Estate and TMT.
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