The US investment-grade bond market reopened Monday following a three-session pause in activity, as concerns over the Iran conflict ease.
Six firms raised a combined $7 billion from high-grade debt offerings, after President Donald Trump said he would postpone strikes on Iranian energy infrastructure following what he described as productive talks toward ending hostilities.
It was the first day of high-grade issuance since Tuesday, ending an unusual dry spell in the market. It comes as companies have faced narrower borrowing windows this month amid war in the Middle East, with heightened volatility making markets less predictable.
Utilities — traditionally seen as safe havens — made up four of Monday’s firms with offerings. They include PacifiCorp, which tapped the market for a $2.5 billion four-tranche transaction after holding two separate bond sales last month. Meanwhile, insurance company Progressive Corp. priced a $1.5 billion bond sale, its first deal in almost three years.
Even as volatility has rattled sentiment this month, investment-grade note issuance has remained on track to reach syndicate desks’ $230 billion March forecast. This is already the fifth-busiest month ever, according to data compiled by Bloomberg.
Also, some federal district and appellate courts have adopted rules requiring automatic disclosure. “Our courts are employing disparate approaches and reaching different conclusions due to the lack of [Federal Rules of Civil Procedure] guidance,” the groups said in their letter earlier this month. The advisory committee proposes amendments to the FRCP.
The insurance industry has routinely pointed to litigation funding—investments in lawsuits in exchange for a percentage of a settlement or judgment—as a big reason for a rapid increase in litigation costs. The practice has been afforded confidentiality protection in many cases, although others with economic interest or influence in litigation are revealed during the court process. Insurance contracts are disclosed. Even if TPLF benefits some plaintiffs, funders should not be excluded from identification, said proponents of reform.