US corporate bond issuance seen increasing after yields slide

Some investors are predicting an increase in corporate bond issuance in the New Year, after bond yields slid last week, opening the door for companies to refinance existing debt or issue new debt at lower costs. Total U.S. investment-grade corporate debt issuance in 2023 is expected to be similar to 2022's total of roughly $1.23 trillion, according to data from the Securities Industry and Financial Markets Association (SIFMA) trade group, well below 2021 and 2020 totals of $1.47 trillion and $1.85 trillion, respectively. But investors and other market participants now see issuance picking up next year following expectations of a quicker pace of interest-rate easing after last week's Federal Reserve meeting.