US Dollar Credit Supply: Higher Supply Than Previous July Levels

Image Source: PixabayJuly’s robust USD corporate supply fuelled by Healthcare• In July, USD corporate supply reached US$38bn, nearly matching the monthly levels seen during the Covid-fuelled surge in 2020. Although 2024 YTD supply has exceeded that of most previous years, it still falls short of the record-breaking supply observed in 2020.• The Healthcare sector dominated USD supply in July, accounting for US$12bn, followed by Oil & Gas with US$8bn. Healthcare remains a significant driver of supply YTD, having issued US$94bn from January until now. Despite a slight decline compared to the previous month, the Utility sector continues to lead in USD credit supply, totaling US$104bn.USD Financials supply reaches highest levels since January• In July, USD financial supply reached its highest level since January, nearly doubling the figures from the previous month to US$57bn. This surge also exceeded July levels from previous years. 2024 YTD Bank senior bond data confirms this trend with a total supply of US$209bn, comprising US$40bn in non-preferred securities (NPS) and US$169bn in preferred securities.• The Finance credit supply demonstrated strong performance, increasing to US$12bn this month from the US$10bn recorded in June. Notably, this figure doubled the supply levels observed in July 2023. On the other hand, insurance-driven supply declined in July, totalling only US$1 bn. On a YTD perspective, both Finance and Insurance sectors show increased supply compared to 2023, with Finance issuance doubling that of the same period last year.Download PDF: US Dollar Credit Supply: Higher supply than previous July levelsMore By This Author:Czech National Bank Review: A Softer 25bp Cut With Tighter Monetary Policy Ahead Mounting US Job Fears To Push The Fed Into Action The Commodities Feed: US Macro Weighs On The Complex