Companies are selling debt to secure low borrowing costs before potential Iranian retaliation impacts bond yields.

From Yahoo Finance: 2025-06-23 13:28:00

Companies in the US and Europe are selling debt to secure low borrowing costs before potential Iranian retaliation impacts bond yields. In the US, six companies are selling debt, with eight issuers in Europe. Despite geopolitical risks, investors are still buying, with Treasury yields falling and financing costs remaining affordable.

Investors are growing cautious, as three US companies delayed high-grade bond sales. European markets see the sale of risky bank debt and green bonds. Syndicate desks anticipate $25 billion in high-grade corporate bond sales in the US. Investors are still willing to buy, pending an Iranian response.

European markets remain active with a variety of bond sales, including green bonds and hybrid bonds. Investor focus is shifting towards European and US issuers with minimal Middle East exposure. Despite uncertainty, companies are still proceeding with bond sales in anticipation of a summer slowdown.

Investors are seeking additional compensation when purchasing corporate debt due to potential volatility. Uncertainty over potential Iranian retaliation to US airstrikes is causing some hesitation in the market. Issuers and syndicates may pause if there is a significant event to mitigate risk.



Read more at Yahoo Finance: Companies Look to Borrow Before Yields Rise on Iran Retaliation