Investors are flocking to longer-dated debt in the surge of January bond sales as they seek attractive yields before anticipated interest rate cuts later in the year.Thank you for reading this post, don't forget to subscribe!
Companies like T-Mobile, Berkshire Hathaway Energy’s PacifiCorp, and Vonovia are capitalizing on strong demand for extended-maturity bonds.
Over half of Europe’s 2024 bond sales have durations of seven years or more, while in the U.S., tenors of 10 to 30 years constitute 44% of total issuance.
Investors expect substantial rate cuts, prompting borrowers to issue longer-term debt with compelling spreads. The current favorable conditions make it an opportune time for issuers to tap the market.