Corporate bond issuance hits record high in Q1

Issuance in the US corporate bond market has reached record levels in the first quarter of 2012 as low borrowing costs and an improving economic backdrop spurred on borrowers.

Issuance in the US investment grade bond market totalled $274.5bn as of 26 March, according to Thomson Reuters/IFR. That surpasses the previous record of $272.3bn, set prior to the financial crisis in Q1 2007. The US high yield market also saw a record level of issuance, with $88bn in issuance as of 26 March. The previous high was the $85.3bn seen in Q4 2010, Thomson Reuters/IFR said. The Barclays US corporate investment grade index rose by 3% in the year to 29 February, to add to a 2.1% gain in December, but has slipped 1.2% this month after a mini-spike in US treasury yields cooled ...