Despite geopolitical and global trade tensions, issuance in investment grade credit markets has been strong in 2025 following a convergence of macro drivers.

Investment grade credit markets are meeting the global demand for capital

"Investment grade credit markets are meeting the global demand for capital"

Two individuals at a desk behind a computer

"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.\r\nOn 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.\r\nDemand 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.\r\n"

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

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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\r\nthat 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."

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.

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