Corporate Bond Market Update | September's Borrowing Boom
U.S. companies kicked off September with a major wave of bond sales, issuing over $56 billion in investment-grade and nearly $10 billion in junk bonds in just one week. With interest rate cuts expected soon, corporate issuers are rushing to lock in favorable yields amid strong investor demand. The surge highlights a rare alignment of falling borrowing costs, high liquidity, and market optimism—making it an opportune moment for refinancing, acquisitions, and capital raising.
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The New Rules of Corporate Distress | How Out-of-Court Restructurings are Reshaping Finance
The corporate restructuring landscape has fundamentally shifted, with 75% of defaults now handled through out-of-court distressed exchanges rather than traditional Chapter 11 bankruptcies. This transformation has enabled aggressive "creditor on creditor violence" tactics where financing lawyers use financial engineering to preserve private equity ownership while forcing losses onto less sophisticated creditors. While companies like Carvana have achieved dramatic value creation through these methods, data shows many firms eventually default again, raising questions about whether this represents innovation or problematic financial gamesmanship that merely defers larger problems.
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