Sales of investment-grade bonds surge despite long-term fears

New York

THE market for US investment grade debt is charging into the New Year after a sluggish end to 2016, but the trend could prove to be short-lived.

Issuance of US investment-grade corporate debt reached nearly US$60 billion last week alone, rebounding from a lacklustre fourth quarter where just US$116 billion was sold in November and December combined. Still, despite the impressive start to the year, sales are expected to fall short of the levels reached in 2016 and 2015.