According to Guosen Securities APP, after the Federal Reserve significantly lowered the benchmark interest rate last week to reduce borrowing costs, American companies flocked to the bond market on Monday. Including T-Mobile US (TMUS.US), 10 high-rated issuers collectively raised $12.2 billion. After the issuance volume was lower than expected last week, the market bounced back. The Xindiga trading department stated that this week's issuance volume may reach between $20 billion and $25 billion. 10 companies borrowed in the junk bond market, making it the busiest day this year in terms of the number of issuers. Also in the United States, 18 leveraged loan transactions were initiated.

Last week, the Federal Reserve decided to cut interest rates by 50 basis points, causing further tightening of credit spreads. This provides borrowers with the opportunity to refinance and raise new capital before profit interruptions and potential volatility from the upcoming U.S. elections or economic data announcements.

David Schiffman, Chief Investment Officer at Aquila Investment Management, said: 'With the uncertainty of Federal Reserve decisions eliminated and investors still having liquidity to deploy, issuers seem eager to complete transactions. With the election approaching, liquidity becomes more difficult, and companies do not want to be excluded from the market.'

Following the Federal Reserve rate cut, the average yields in the U.S. investment-grade and high-yield bond markets have decreased, making it more attractive for issuers. Spreads have also narrowed. Leveraged loan prices remained stable over the past week.

The cost of junk bond borrowing decreased this month.

Companies entering the junk bond market on Monday include online furniture retailer wayfair (W.US), which is seeking to borrow 0.7 billion dollars to refinance existing maturing bonds. Goldman Sachs is the lead underwriter for this transaction. Cerdia, a cigarette filter manufacturer, issued 0.8 billion dollars in bonds to refinance its 2027 maturing notes and provide funding for shareholders. Meanwhile, coal producer Coronado is issuing 0.4 billion dollars in bonds to redeem its 2026 notes.

Telecom operator Windstream Holdings (WINMQ.US) is utilizing loans and the bond market. The company launched a $1.3 billion debt plan on Monday for refinancing existing loans, led by JPMorgan.

Although most transactions in the loan market this year involve repricing or refinancing existing debts, leveraged buyout financing deals are also increasing. On Monday, Agco Grain & Protein was marketing a $0.4 billion issuance to fund the acquisition of American Industrial Partners.