Yahoo Finance: Secondary Equity Issuance Announcements on the Rise: What It Could Mean for Investors

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Excerpt:

It has been a record-breaking start to the year in capital markets. Following the past two years' trend of quickly rising interest rates, companies have been aggressively seeking liquidity, at least according to the data. In the fixed-income space, January and February 2024 were both extremely strong in terms of new corporate bond issuance, according to Bloomberg. This comes as looming debt maturity walls have cast some fears regarding companies' ability to repay lenders. So far so good.


Data from the Securities Industry and Financial Markets Association reveals that total U.S. corporate bond supply as of February 2024 was up 31% year over year. It's reasonable to conclude that a higher average borrowing cost for multinational corporations is not a major challenge today.