The US private placement market, known for its reliable liquidity even in periods of volatility, did more than stay open throughout COVID-19. Record volume printed in 2021 even as a normally reliable issuance source, Australasian corporate borrowers, leaned more on domestic funding options. Australian and New Zealand issuers are now drifting back toward USPP issuance.
Corporate borrowers have leaned on bank loans in 2022, as volatility and rising cost of funds in fixed income markets have made public bond issuance less attractive. The situation will not last indefinitely, however – indeed, corporate issuers may be forced back into funding markets in H2.