The global bond market is booming at the beginning of the year! A record high of $245 billion in financing

The Zhitong Finance App learned that the global bond market kicked off 2026 with the hottest market in history, and various types of borrowers are quickly taking advantage of investors' demand for risky assets. According to the data, as of January 7, companies and governments in the US, Europe and Asia have raised about 245 billion US dollars in capital through various currencies, setting a record high for the same period.

Issuers that previously postponed their loan plans in December are now flocking to the market to lock in funds before the quiet period of earnings reports starting next week. And eager buyers seem unaffected by the escalating geopolitical tension in the Eastern and Western hemispheres. Borrowers are also trying to rush ahead of a wave of anticipated bond issuances related to artificial intelligence projects.

“The market started off very well this year,” said Priya Misra, portfolio manager at J.P. Morgan Chase Investment Management. “Demand is always in sync with supply, and there is almost no need to offer premium concessions to issue new bonds.”

According to analysis, in the US, as of this Tuesday, nearly 40 investment-grade companies had sold $72 billion in bonds, setting the busiest two-day issuance schedule on record.

These include chipmaker Broadcom raising $4.5 billion through multi-batch transactions, and France Telecom Orange SA raising $6 billion through five batches of high-rated dollar deals. Both deals showed strong market demand for long-term securities, continuing last year's trend.

Eleven borrowers entered the market this Wednesday. It is expected that more deals will land before the end of this week. This week's circulation volume is expected to reach the highest level since 2020. Stimulus measures during the 2020 pandemic boosted market prosperity.

Underwriters also expect that next week after major US banks announce their results, they will set off a wave of debt issuance frenzy.

Meanwhile, the high-yield bond market is entering its busiest week in a month, with $4.45 billion worth of bonds being priced since Monday. Riskier CCC-rated bonds are also being promoted for issuance.

January is usually one of the busiest months for global bond issuance. Companies secure capital in advance, and investors put new capital into operation. Misra added that sound corporate earnings, resilient consumers, and still attractive high-rated bond yields all boosted demand this week, particularly for investors seeking to adjust their portfolios.

The European market also had a good start. According to data, the primary market issued a record number of new bonds in a single day on Wednesday, with issuers including companies, financial institutions and countries raised more than 57 billion euros (about 66.6 billion US dollars). Market transactions cover all types of issuers, and companies are selling multiple batches of bonds with different terms to take advantage of positive market sentiment and complete annual loan plans ahead of schedule during a period when risk premiums are historically low.

The pace of European debt issuance is likely to continue on Thursday, and deals already commissioned by Italy and Portugal are expected to enter the market.

Despite the tidal wave of new bonds, interest spreads on corporate bonds (that is, the additional income required by investors holding these bonds compared to US Treasury bonds) have generally been tight, highlighting the strong demand for credit bonds in the market.

Fabiana Del Canto, co-head of European, Middle Eastern and African capital markets at Mitsubishi UFJ Financial Group, said: “Given the potential risk that interest spreads may widen from current levels, issuers are scrambling to enter the market to lock in attractive financing costs, which is benefiting from strong investor demand during the new year.”

In Asia, borrowers have raised more than $22 billion this week, and more are likely to be issued in the next few days, as several previously announced entrustment deals have yet to be completed.