US Corporate Bond Sales Seen Dropping After Banks Slow Issuance

Blue-chip company bond sales are poised to plunge in the US in the second half of the year, in part because banks, some of the biggest issuers in the market, have already borrowed so much, according to strategists and syndicate professionals.

Companies will probably sell about $600 billion of US investment-grade bonds in the second half of the year, according to strategists at JPMorgan Chase & Co., down from about $900 billion in the first half. Issuance often dips in the second half of the year, and this year will probably not be an exception, the strategists wrote this ...