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Investment Grade High Yield Corporate Debt Hits Over $1.2 Trillion

“Record-low rates are driving a gusher of new corporate debt this year, but investors should be careful because the quality of those bonds has peaked, experts say.

The amount of investment grade and high-yield corporate bonds issued so far this year is already at a record $1.2 trillion, according to Thomson Reuters IFR. And corporate treasurers are rushing to issue more debt before the end of the year, when tax laws are likely to change.

This week alone, there has been about $35 billion in investment grade deals, including Disney [DIS  49.405    -0.315  (-0.63%)  ]Shell [RDS.A  67.00    0.11  (+0.16%)   ], and Costco [COST  104.10    2.22 (+2.18%)   ]That puts the November total at about $125 billion, the second highest monthly amount ever, according to IFR.”

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