The US dollar credit market witnessed a powerful surge in corporate issuance during November, sparking curiosity about the driving forces behind this trend. With a staggering $105 billion in new debt, November secured its place as the third most active month of 2025, surpassing October's $99 billion. This brings the year-to-date corporate supply to $913 billion, significantly outpacing 2024's $807 billion, yet still trailing the pandemic-induced peak in 2020.
But here's where it gets intriguing: the Technology, Media, and Telecommunications (TMT) sector reigned supreme once more, issuing an impressive $52 billion in November. Healthcare and Utilities followed with $16 billion and $10 billion, respectively. Meanwhile, Real Estate and Oil & Gas each contributed $6 billion, and the Autos and Consumer sectors were relatively subdued with $1 billion each. Year-to-date, TMT leads the pack with a 99% increase compared to the previous year, while Consumer, Real Estate, Healthcare, Industrial, and Oil & Gas sectors show varying degrees of lag.
And now for a twist in the plot: the tenor mix underwent a notable shift in November. Issuance of ultra-long-term bonds (17 years and above) cooled down to $30 billion from October's $48 billion, while the 9-12 years tenor range rose to $28.3 billion. Together, these two categories accounted for just over half of the monthly corporate issuance. The shorter-term tenors remained less prominent, with the 0-3 years, 3-6 years, and 6-9 years categories totaling approximately $46 billion. Interestingly, this longer-dated bias is also evident in the year-to-date figures, where the 9-12 years and 17 years+ tenors comprise over half of the 2025 corporate supply.
This data raises questions: Is the market favoring longer-term investments? Are investors seeking stability in an uncertain economic climate? Or is this a strategic move by corporates to lock in favorable rates? The answers may lie in the intricate interplay of market forces and economic indicators. What do you think is driving this trend? Share your insights and let's explore the potential implications together!
