High-Grade Debt Issuance Surpasses $57 Billion in Post-Labor Day Surge
Debt issuance surged to over $57 billion across two days following Labor Day, driven by a historically active period for dealmaking after summer lulls. June through August saw record-breaking monthly totals of $184 billion, $137 billion, and $151 billion respectively, with September on track to exceed last year’s unprecedented output of $189 billion. Oracle's 2025 issuance has seen a significant yield increase from 5.95% in 2026 to roughly 7.875%, reflecting tighter spreads and higher risk premiums. Despite the strong start, September lacks blockbuster deals so far compared to earlier months. The largest offerings this week include GlaxoSmithKline's $6.5 billion acquisition-backed deal and a $6 billion print for UBS. M&A-related financing has picked up pace after a slow summer, with 20% of August proceeds ($31 billion) allocated toward acquisitions — the highest since May. AI debt remains an outlier in terms of spreads but is still relatively stable compared to broader high-grade indices. Market participants suggest that further large-scale AI and data center financing could drive issuance higher this month.
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Topics: bond issuance GlaxoSmithKline high-grade debt market trends Oracle (ORCL) UBS