Corporate Reverse Yankee supply running behind last year and expectations
Corporate supply was US$43bn in April, up on the US$32bn seen in April of 2019 and 2021. Redemptions were low in April at just US$26bn, the lowest month for redemptions this year. Net supply amounted to US$17bn. Corporate supply is now sitting at US$250bn YTD, below the YTD figures seen in 2020 and 2021. This is still up slightly on the average US$230-240bn of the years previous. We forecast USD corporate supply to amount to US$650bn in 2022, much in line with 2018. We forecast US corporate supply (in € & US$) to total US$630bn.
Corporate Reverse Yankee supply is totalling €12bn YTD, down on the €22bn supplied by this time last year. Supply YTD had totalled €30bn by this time in 2019 and 2020. We initially forecast €55bn for Reverse Yankee supply in 2022, but considering the low levels thus far this may turn out to be less.
Supply in the TMT sector picked up in April, pencilling in US$16bn. TMT YTD supply is now at US$63bn, still behind the substantial US$110bn supplied by this time last year. After another US$3bn was supplied in the Autos sector, the YTD figure now sits at US$15bn, up on the US$10bn last year YTD.
Financial supply running ahead of all previous years on a YTD basis
Financial supply in April was pencilled in at US$50bn, lower than the US$60-67bn seen in the past two years, but still up on the years previous. Redemptions were US$22bn in April, resulting in net supply of US$28bn. YTD supply is now at US$248bn, notably ahead of all previous years.
In April, Bank senior supply amounted to US$36bn, lower than the US$51bn seen in April of last year. Bank senior supply continues to drive the large supply seen this year, with Bank senior YTD supply sitting at US$132bn, up on the US$120bn by this time last year. Bank capital, on the other hand, has been somewhat lower, with US$23bn supplied YTD, versus US$35bn last year YTD.
Read the original analysis: US Dollar Credit Supply
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