Investment grade credit markets are meeting the global demand for capital

Mar 13, 2025
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Two individuals at a desk behind a computer

Despite geopolitical fragility and global trade tensions, issuance in the investment grade credit market has seen a strong start to the year following a convergence of several key factors.

On the supply side, strong corporate fundamentals, including robust balance sheets, have emboldened corporates to pursue investment opportunities within their own businesses. Secular trends like the AI infrastructure buildout have also fueled an unprecedented demand for capital across key sectors.

Demand for investment grade credit is similarly rising as the shift to a higher-yield environment has made fixed income more appealing for investors and allocators.

  • Investment grade credit markets meeting global demand for capital
    Jonny Fine, global head of investment grade credit at Goldman Sachs, discusses the key themes and macro drivers fueling activity in investment grade credit markets this year.
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“
Corporates have recognized that we are not going back to a central bank supported yield environment like we had during quantitative easing – there is broad acceptance that this is the price of doing business now. Additionally, corporates are seeing tremendous opportunities to invest within their own businesses – thus requiring financial resources. Many such opportunities project returns that hurdle, even with a higher cost of debt.”
Jonny Fine
Global Head of Investment Grade Credit
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