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U.S. corporate bond, IPO markets heat up as recession fears persist

September 11, 2019 / David Randall

Corporate America appears to be rushing to get the most out of the decade-long bull market in stocks and bonds before a possible recession and election-year stock market volatility slam the IPO and credit windows shut. Approximately 70 companies have registered with the U.S. Securities and Exchange Commission to go public, according to estimates from Renaissance Capital, while $72 billion in investment-grade corporate debt – a figure nearly as large as the total issuance in August - was issued last week, according to data from Dealogic. The rash of new deals comes as the U.S.-China trade war weighs on the global economy, helping push 30-year Treasury yields to record lows and increasing fears of a global economic slowdown. U.S. manufacturing activity contracted for the first time in three years in August, while construction spending barely rose in July, helping send business confidence lower, according to the Institute for Supply Management.