Junk Issuance Likely to Shrink 15% in 2022, Bank of America Says

U.S. junk bond offerings have slowed from their record-breaking pace, spurring Bank of America to forecast that the supply of newly issued notes in 2022 will shrink by 15%.

• Issuance peaked between March and May, but “has been rapidly decelerating in the last few months,” according to Oleg Melentyev, Bank of America’s high-yield strategist
• The forecast for 2022 U.S. junk-bond supply is $425b, down from the full-year 2021 forecast of $500b, according to BofA’s report dated Oct. 22
  • Previously: Goldman Projects 25% Drop for New Junk in 2022
• Even as BofA’s gross issuance estimate points to a meaningful slowdown, ...