(Finance) – Global bond issuance in the first quarter increased by 15%largely thanks to US growth, which is even faster than a year ago. S&P believes that much of that increase was due to borrowers taking advantage of the recent sharp decline in yields refinance ahead of this year’s growing uncertainties.
This is revealed by the new report S&P Global Ratings on global credit conditions in the first quarter of 2024 and on the trend of global bond issuance.
The report shows that geopolitical risks are increasing and potential interest rate differentials tamong the major central banks could dampen optimism and lead to further strengthening of the US dollarwith a consequent reduction in the volume of emissions, especially if converted into dollars.
Emissions outside the developed markets have been relatively small but “could offer an upside surprise, in particular if Chinese bond issuance were to expand in response to any stimulus measures. At the moment, however, this is not foreseen in S&P’s base case.”