With only a handful of business days remaining on the calendar and a battered market happy to hit the reset button for the year, high yield bond issuance in the U.S. looks to total $262 billion in 2015, a roughly 16% drop from the $310 billion recorded in 2014, according to S&P Capital IQ LCD.
The annual figure is the smallest amount since the $218 billion recorded in 2011.
What type of issuance can market players expect in 2016?
"Prominent bank forecasts for U.S. high-yield new issuance in 2016 range from $200–300 billion," says LCD's Matt Fuller. "This compares to a pro forma domestic and Yankee speculative-grade corporate supply of $262 billion for 2015, which is at the lower end of the $260–340 billion consensus forecast range put forth one year ago." - Staff reports