High-Grade Borrowers Jump Back Into Bond Market After Halt

The US investment-grade bond market reopened Monday following a three-session pause in activity, as concerns over the Iran conflict ease.

Six firms raised a combined $7 billion from high-grade debt offerings, after President Donald Trump said he would postpone strikes on Iranian energy infrastructure following what he described as productive talks toward ending hostilities.

It was the first day of high-grade issuance since Tuesday, ending an unusual dry spell in the market. It comes as companies have faced narrower borrowing windows this month amid war in the Middle East, with heightened volatility making markets less predictable.

Utilities — traditionally seen as safe havens — made up four of Monday’s firms with offerings. They include PacifiCorp, which tapped the market for a $2.5 billion four-tranche transaction after holding two separate bond sales last month. Meanwhile, insurance company Progressive Corp. priced a $1.5 billion bond sale, its first deal in almost three years.

Even as volatility has rattled sentiment this month, investment-grade note issuance has remained on track to reach syndicate desks’ $230 billion March forecast. This is already the fifth-busiest month ever, according to data compiled by Bloomberg.

Photo: The Progressive Corp. headquarters is seen in Mayfield Village, Ohio. Photographer: John Quinn/Bloomberg