US Dollar Credit Supply: Supply trailing that of last year

Corporate supply slows down in July

USD corporate supply was below average in July pencilling in US$28bn, the lowest recorded figure of the year and considerably lower than last year’s July figure of US$51bn. However, we expect USD supply to approach US$800bn in 2025, falling just marginally short of last year. This prediction holds firm as the YTD figure sits at US$495bn.

Reverse Yankee supply remains a driving force

Another €5bn in corporate reverse Yankee supply in July, puts the YTD figure pencilled in at €55bn. The large influx of reverse Yankee supply certainly contributes towards the large EUR corporate supply being observed, but also slightly reduces the USD corporate supply levels. The still attractive cost saving advantage on offer for US issuers will keep these issues at high levels. We expect to exceed our original forecast of €65bn by the year end.

USD financial supply increases from June’s levels

On the financial side, after an uneventful June USD Issuance for financials increased in July to $44bn and net supply jumped considerably to $12bn. The bulk of it is composed of senior unsecured instruments while $13bn stems from the subordinated segment.