Transformative Time for Markets, Issuance: Patrice Altongy

Bloomberg

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00:00In the wake of this withdrawn offering Bloomberg is reporting that no companies are considering selling new investment grade bonds

00:05today. If the wobbliness in the stock market extends into next week how do you see that impacting issuance with this pulled

00:13offering. Yeah I can't comment on one particular company situation in their access to the market. But what we've seen from our

00:21side is we've definitely seen an increase in supply. Right. We had the screen up earlier but we've hit one point five trillion this

00:27year. That was what the markets were expecting for the entire year. That supply has been very well absorbed. It has come

00:34from the tech sector which is up this year in terms of its volume. But those order books have also been massive. So we're still

00:41seeing a huge amount of cash that's sitting on the sidelines that wants to come in and and buy these transactions. I think when you

00:49look at spreads we've seen some pullback in spreads. But if you put that in a historical context they are still extremely tight. I

00:57think right after I was on here in September we hit the the all time tights that we've had since 1998 in spreads at 72 for the

01:06index. We're just at about 80 right now. So that's pulled back a little bit. Of course that does move to with where our

01:11treasuries are. And so I think as investors look at the future we are in an incredibly transformative time in the markets right now. And the U.S.

01:22investment grade markets is going to be the place to fund this growth. And I think for investors looking at and thinking

01:29about what is the total volume that can come and having those expectations is something that they would want to

01:36understand. If you do look back to Covid I mean that was a year where we had you know one point seven five trillion of of supply.

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