Odaily Planet Daily reports: Kelsey Berro, portfolio manager at JPMorgan Asset Management, said that September will see a busy issuance period in the investment-grade bond market, but demand for corporate bonds remains strong, and concerns about the large supply may be overblown. Berro said on Monday that market expectations for September issuance range widely, between $175 billion and $250 billion. She noted that credit portfolio managers believe even if issuance reaches $250 billion, “it’s not a problem,” though the final issuance volume remains uncertain, making it harder for market participants to prepare in advance.
Berro warned that if the large supply in September can be smoothly absorbed by the market, investors currently holding back may quickly enter. She said, “Funds will flood into the market.” Any sign of market stabilization could attract a major return of buying interest.