Junk-Bond Frenzy Set Records in August, as Everyone Tried to Front-Run the Fed

by Wolf Richter
Wolf Street

But seeing the frenzy, the Fed has stepped away.

For the US junk bond market, August was the month of superlatives and records. Companies issued a total of $52.9 billion in high-yield bonds, by far the most ever for any August, which is normally a slow month, and the second highest amount for any month, behind only June, which had set the all-time record at $59.9 billion, according to S&P Global. August issuance was five times the volume of August last year, when there were already worries about the economy, a possible recession, the corporate debt overhang, and a trade war between the US and China:

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