Higher Coupon Payments Driving Demand for Credit, BofA Reports

Reported about 1 year ago

Bank of America strategists state that as interest rates rise, corporate bond investors are seeing a 15% increase in income in 2024 compared to last year, with higher coupon payments leading to strong demand for investment-grade credit. With total coupon payments from June to December expected to reach $220 billion and net supply at around $89 billion, the market is poised to maintain tight levels due to factors like increased demand and decreased issuance volume, according to the strategists.

Source: YAHOO

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