Point essentially Priscilla is that We're still at a high in terms of Issuance at the end of February Beginning of March why is that as we see These rates uh Rising ever higher Hi mate good morning so it's exactly That right so we had historical hybrid Uh High issuance this year so companies Are selling bones like never before and This is only a sign of anxiety it's Anxiety by companies and treasurers the Rates are going to be higher for longer So they need to get in and they need to Sell their bonds before it's too late in Today's inflation print is just one more Proof to that right it's going to become More expensive to the point that it can Get even prohibitedly expensive to do so So the data today kind of justifies that Anxiety where is that anxiety most acute Which sectors which companies are at the Forefront of issuance at the Forefront Of issuance right now is investment Grade companies right because they still Have the ratings they still have Market Access and investors are still buying Into them we've seen earlier this week Bonds from like McDonald's from BASF in Germany so those are national champion Names that people like to buy and they Know them well but on the other side of This equation we have junk companies Right access for those have become more Complex over this year as rates shoot
Higher on the IG part of that equation Then is that demand holding up are we at Peak issuance at this point and are the Buyers going to still be out there so That's a good question Tom because the Thing is we're still seeing a lot of Supply in the market but investors are Turning sour and on credit like in Credit right we came into 2023 thinking Oh this is going to be the year of the Bond January was great it was approved to That and returns were his teller then Came into February things turned sour And investors are like we don't like This anymore so returns in this February Was like the worst ever for February in History
