Is there trouble ahead in the stock markets? Some analysts have begun cautioning that a bubble is forming in credit markets. Companies have been piling on debt in recent years to take advantage of low interest rates, or more recently, to get ahead of a series of well-telegraphed interest-rate hikes.
As a result, the U.S. primary corporate bond market is at record levels. The investment-grade market saw $1.44 trillion of issuance in 2,127 deals through December 26, topping the record $1.34 billion recorded in 2016, according to data analytics company Dealogic.
The high-yield market has chalked up $266.3 billion of debt in 469 deals, making it the fourth-biggest year for issuance. The high-yield record was set in 2012, when issuers sold $321 billion of debt in 604 deals.
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