US Dollar Credit Supply: Very low year-to-date supply for financials
USD supply was rather low in April, but we expect an increase in May. Meanwhile, financials are now running significantly behind previous years on a year-to-date basis. There could be more opportunities for reverse yankee supply, as the USD-EUR spread differential widens
Corporate supply in April was rather low, amounting to US$27bn, down compared to US$45bn in April last year. However, we do expect an increase in supply in May, as is the norm. With US$52bn in redemptions in April, corporate net supply was negative at -US$25bn. However, on a year-to-date basis, supply is sitting at US$273bn which is still higher than the 2022 YTD level of US$251bn and in line with the 2021 YTD level of US$273.
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