Global bond market kicks off the year with a bang! $245 billion in financing sets a new record high.

The global bond market kicked off the year 2026 with the most booming market in history, as various borrowing entities are seizing the opportunity to take advantage of investors' insatiable demand for risk assets. Data shows that as of January 7, companies and governments in the United States, Europe, and Asia have raised approximately $245 billion through various currencies, setting a new historical record for the same period. Issuers who postponed their borrowing plans in December are now rushing to enter the market, hoping to secure funds before the start of the blackout period ahead of next week's earnings reports. And eager buyers do not seem to be affected by the escalating geopolitical tensions in the eastern and western hemispheres. Borrowers are also trying to get ahead of an expected wave of bond issuances related to artificial intelligence projects. "This year the market has started off with a bang," said Priya Misra, portfolio manager at JPMorgan Asset Management, "demand has always been in sync with supply, and newly issued bonds almost do not need to offer any concessions on issuance." According to analysis, in the United States, as of this past Tuesday, nearly 40 investment-grade companies have sold $72 billion in bonds, marking the busiest two-day issuance schedule on record. This includes chip manufacturer Broadcom raising $4.5 billion through multiple transactions, and French telecommunications company Orange SA raising $6 billion through five tranches of high-rated dollar trades. Both transactions demonstrate strong demand for long-term securities in the market, continuing the trend from last year. On Wednesday, eleven borrowers entered the market, with more transactions expected to be finalized by the end of the week. Issuance this week is expected to reach the highest level since 2020, when stimulus measures during the pandemic period boosted market prosperity. Underwriters also anticipate a wave of bond issuance following the release of earnings from major U.S. banks next week. At the same time, the high-yield bond market is experiencing its busiest week in a month, with $4.45 billion in bonds priced since Monday. Riskier CCC-rated bonds are also being marketed. January is typically one of the busiest months for global bond issuance, with companies ensuring funds in advance and investors deploying new capital. Misra added that strong corporate earnings, resilient consumers, and still attractive yields on high-rated bonds have fueled demand this week, especially for investors looking to adjust their portfolios. The European market is also off to a strong start. Data shows that on Wednesday, the primary market saw a record daily issuance of new bonds, with issuers raising over 57 billion euros (approximately $66.6 billion) from entities including corporations, financial institutions, and countries. Market transactions cover various issuers, with companies selling multiple tranches of bonds with different maturities to take advantage of favorable market sentiment and historically low risk premiums to complete their annual borrowing plans ahead of schedule. The bond issuance pace in Europe is likely to continue on Thursday, with deals expected to come to market from Italy and Portugal. Despite the flood of new bond supply, overall corporate bond spreads (the additional yield investors demand for holding these bonds compared to U.S. treasuries) remain tight, highlighting strong market demand for credit bonds. Fabiana Delcanto, Co-head of Capital Markets for Europe, Middle East, and Africa at Mitsubishi UFJ Financial Group, said: "With the potential risk of spreads widening from current levels, issuers are rushing into the market to lock in attractive financing costs, benefiting from strong investor demand during the new year." In Asia, borrowers have raised over $22 billion in funds this week, with more issuances possible in the coming days as several previously announced transactions are still pending.