Sales of dollar-denominated corporate bonds soared to a record for the second straight year, led by speculative-grade borrowers that rushed to offer debt before the Federal Reserve cuts its unprecedented stimulus.
JPMorgan Chase & Co. recommends sticking with U.S. high-yield bonds next year as the best protection against rising interest rates. Morgan Stanley cautions that valuations are unattractive following a record five-year rally.
A gauge of U.S. company credit risk was little changed as data on consumer confidence increased. High-yield issuers will offer about $700 billion of debt next year, according to JPMorgan Chase & Co. analysts.
Air Medical Group Holdings Inc., the provider of emergency air transportation services, is marketing debt as sales of speculative-grade bonds to fund acquisitions triple from year-ago levels as a percentage of overall volume.