Goldman Raises US High-Grade Debt Sales View to $2.1 Trillion
Goldman Sachs Group Inc. has boosted its investment-grade bond sale forecasts for the US and Europe after a strong start to the year for issuance and on expectations of a stronger economic outlook.
The bank’s analysts now expect $2.1 trillion of US high-grade debt sales this year, up from a previous $1.9 trillion projection, and 850 billion euros ($1 trillion) in European high-grade issuance, which was increased from 725 billion euros, according to a note on Thursday.
They also cited strong reverse Yankee offerings - bonds issued by companies outside their home market - as a reason for its upgraded figures.
Companies have sold about $336 billion of highly-rated US corporate debt so far this year. Large offerings by tech companies including Oracle Corp. and Google parent company Alphapet Inc. kicked off what Wall Street expects will be a record year for debt issuance, boosted by tech companies borrowing large sums to invest on their AI capabilities.
Goldman’s higher forecast follows a similar increase by UBS Group AG, which earlier this week raised its estimates for US investment-grade tech bond sales to $360 billion from $300 billion, citing growing “AI disruption fears” and higher capex guidance from hyperscalers.
Goldman projects hefty debt sales linked to M&A activity this year. While M&A volumes have started the year at a subdued pace, it still expects $200 billion in M&A-related supply. Banks are readying another $50 billion in the US for next week, according to an informal Bloomberg poll of syndicate underwriters.
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