The U.S. corporate bond universe stood at $3.9 trillion as of June 30, up 12% from a year earlier on record new issuance, according to a Fitch Ratings report.
The split between investment-grade and speculative-grade issues was 74% and 26%, respectively; and the BBB segment rating accounted for the highest proportion of the market (39%). Issues rated A or higher accounted for 34% of the market.
The Fitch report said refinancing risk remains low, given the current record pace of issuance. The firm noted that “a gradual rise in interest rates would have limited impact for U.S. corporate credits as a whole, given the offsetting backdrop of U.S. economic growth and aggressive refinancing by most corporates over the last few years.”