The corporate primary issuance market has ground to a virtual halt with just $2 billion of investment grade deals coming to market in the last week and $300 million of high yield deals. The month-to-date total volume for July is a mere $14 billion, a level which is less than half the monthly pace of the last two years and demonstrates the degree to which the debt market has shut down. With volume so light it is difficult to discern meaningful trends in the ratings and maturities data, other than to observe that although there is still some diversity in the actual ratings of the deals that are coming to market, the increasing number of deals that are being pulled given lack of investor appetite paints a picture of an extremely dysfunctional market.
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