Firms Are Rushing to Sell Junk Debt Before 2023 Window Closes

Companies are rushing to borrow in US junk bond markets while investor demand is still strong, taking advantage of what could be the last window of opportunity this year.

High-yielding issuers have sold more than $13 billion of fresh debt so far this month, tapping markets as Treasury yields retreat from October’s peaks and optimism mounts that the Federal Reserve’s interest-rate hiking cycle is over. Already, November sales are outstripping all of last month’s issuance by over 40%, according to data compiled by Bloomberg.

The surge in sales, however, is expected to be short-lived. Firms that need to refinance near-term ...