US companies rushed to tap debt markets on Monday, raising more than $40bn as improving geopolitical sentiment and supportive financial conditions encouraged a wave of issuance across investment-grade and leveraged credit, according to a report by Bloomberg.
The surge followed a tentative agreement between the United States and Iran to reopen the Strait of Hormuz, a development that helped drive a sharp decline in oil prices, gains in equities, and softer expectations for near-term US rate hikes. The shift in macro sentiment contributed to a broadly risk-on tone across global credit markets.
Among the largest issuers was Nvidia, which came to market with a major investment-grade bond deal, while other borrowers also sought to take advantage of strong investor demand. In the leveraged loan space, Qnity Electronics launched one of the more sizeable transactions as high-yield debt prices strengthened and yields moved lower.
Market participants described conditions as highly favourable, with strong inflows into corporate bond funds and abundant liquidity supporting new issuance. Investor appetite has remained robust throughout the year, underpinned by yield demand and relatively contained credit spreads.
Alongside refinancing activity, several deals were linked to mergers and acquisitions. This included a $2.5bn leveraged loan backing LS Power’s acquisition of energy assets from Constellation Energy, as well as a $2.75bn financing package supporting Stonepeak’s purchase of a controlling stake in BP’s Castrol business.
Analysts noted that improving risk sentiment could further compress spreads in investment-grade credit, which remain near historically tight levels. Lower oil prices were also seen as supportive for inflation dynamics and cyclical sectors, reinforcing the constructive backdrop for borrowers.
Issuers were also moving to take advantage of a narrow issuance window ahead of upcoming central bank meetings, a public holiday, and other calendar constraints expected to reduce market liquidity later in the week.
