Deal Slump Hits US High-Grade Bond Supply and Pressures Spreads Amid Trade Policy Fears
U.S. high-grade corporate bond issuance has hit a five-year low amid economic uncertainty over President Trump’s tariff threats, potentially impacting bank revenues and jobs.
Published on March 28, 2025
Recent reports, including a Reuters article dated March 28, 2025, indicate that the U.S. high-grade corporate bond issuance pipeline has dropped to its lowest level in five years. The slowdown is attributed to growing economic uncertainty driven by President Trump’s tariff threats, and raises concerns that reduced bond issuance could hurt banks' revenues and potentially lead to job losses in the financial sector.
Additional insights from market watchers, including Barclays and warnings from Moody’s reported by the Financial Times (March 25, 2025), suggest that risks stemming from the current trade policies are also affecting overall economic growth. This confluence of factors has investors and banks closely monitoring the situation as uncertainty continues to shape bond market dynamics for 2025.