April Credit Snapshot

Summary

April fell short of estimates due to lingering impacts of early month volatility
Mixed signals from new issue metrics throughout April, strong names fared well relative to others
Issuers primarily favored the short end and belly of the curve despite some outliers tapping the long end
Investor appetite was solid, favoring FXD vs. FRN, overall demand still shy compared to firmer markets
Contingent on headline risk disruption, May is set to perform well as April ended with positive momentum

April 2025

April issuance activity was a tale of two halves, the month began with a significant disruption in the primary market. President Trump’s announcement of sweeping tariffs led to a temporary halt in new bond issuance, as issuers and investors grappled with the implications of the new trade policies. This pause was reminiscent of market conditions not seen since the pandemic-induced disruptions. As the month progressed, activity resumed driven by five of the six global systemically important banks (GSIB) issuing fresh debt after earnings which paved the way for a strong second half of the month.

Despite a strong finish, April issuance was approximately 15% below expectations. The month closed with the new issue volume coming in at $104b, performing better than April 2024 and 2023 but below April 2020-2022. Apart from the GSIB issuance signaling confidence to market participants and helping redetermine fair value in the current market conditions, two deals that headlined the month were Walmart’s $4b debt offering and Alphabets $5b debt offering which generated a peak order book of over $100b. Average new issue concessions, compression, attrition, and oversubscribed order books remain in line with 2024 data, although April metrics varied depending on the issuers credit rating. FIG led issuance volume, with corporate activity trailing closely, and emerging markets seeing limited participation. Issuers favored the short end and belly of the curve with 5-7y and 10y dominating issuance volume while some notable tranches tapped the 30y and 40y tenor.

AmeriVet Securities remained active in the capital markets throughout the month as we Co-Managed seven deals worth $27.5b and €6.75b of high-grade debt – JPMorgan’s $6b debt offering, BNY’s $2.5b debt offering, Wells Fargo’s $8b debt offering, Walmart’s $4b debt offering, Keurig Dr. Pepper’s $2b debt offering, and Alphabet’s $5b and €6.75b debt offering – continuing to add value with our focused outreach to our Tier II and Tier III professional investor base.

May Outlook

The new issue calendar for May, a historically busy month, is calling for $130b. We expect to see ongoing tariff-related headlines keeping spreads volatile, preference for 3–7 year maturities due to rate uncertainty, investors favor stronger rated names, trade sensitive sectors experiencing weaker deal execution, and optionality structured into new issuance for May. Macro headwinds and policy risk will continue to drive a cautious sentiment causing issuers to take advantage of favorable execution windows and investors to be more selective with their allocation.

U.S. Treasury