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US Investment-Grade Bond Issuance Projected to Hit Post-Pandemic Peak in May

Apr 28, 2026 16:27 UTC
BAC
Short term

Bank of America forecasts nearly $190 billion in high-grade corporate bond sales for May. The surge is driven by a rush to secure funding before potential yield increases.

  • Projected $190 billion in high-grade bond sales for May
  • Represents a $15 billion increase over April issuance
  • Highest activity level since the pandemic era
  • Key drivers include data centers and hyperscale tech growth
  • Issuers are hedging against rising Treasury yields and oil prices

US corporations are preparing for a massive capital raise in May, with Bank of America strategists predicting investment-grade bond sales will reach approximately $190 billion. This volume would represent the highest level of activity since the Covid-19 pandemic. The projected issuance marks a $15 billion increase over April's figures. According to BofA strategists Yuri Seliger and Sohyun Marie Lee, the acceleration is primarily motivated by a desire to front-load borrowing to avoid future volatility. The demand for capital is being fueled by three primary drivers: the expansion of hyperscalers, ongoing merger and acquisition activity, and the rapid build-out of data center infrastructure. These sectors are prioritizing liquidity to fund growth initiatives. This rush is a preemptive move against macroeconomic headwinds. Companies are seeking to lock in current rates before a combination of rising oil prices and a robust US economy potentially drive Treasury yields higher, which would increase borrowing costs and lower existing bond prices.

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