US investment-grade bond issuance is set to hit $1.76 trillion this year, surpassing the 2020 pandemic-era record, as companies borrow heavily to fund AI spending. Citadel Securities warns the market has little room for error if those outlays fail to generate returns.
The People's Bank of China has created a swap facility aimed at bond-market stress, letting systemically important wealth managers and fund firms swap holdings for cash when redemptions spiral. It is a backstop for the non-bank side of China's bond market, not a blanket guarantee.
Large Chinese companies are increasingly issuing corporate bonds instead of taking bank loans, drawn by interest rates below 2.1% versus loan rates of 2.5–3%. The shift is reshaping how state-owned enterprises, listed firms and industrial leaders raise money.
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