DECEMBER OUTLOOK

Syndicate expectations point to a relatively slow December, with issuance estimates ranging from $35 billion to $40 billion. Most of the activity is expected to take place during the first two weeks of the month as issuers capitalize on the window between post-Thanksgiving and the Christmas Holiday. This year’s December estimates fall short of 2021’s $61 billion record setting issuance but align with December 2024’s performance of $41 billion.

 

NOVEMBER: INVESTMENT GRADE CREDIT

November volume closed at $134 billion – just $3 billion short of the record $137 billion set in 2012. November saw a heavy, multi-sector IG calendar anchored by large multi-tranche prints from mega-cap Tech/Communications (Amazon, Alphabet, Verizon), global Pharmaceuticals (Pfizer, Novartis, Roche), and Financials (Morgan Stanley, UBS, Schwab, Northern Trust), alongside a deep bench of pipelines, utilities, REITs, and industrials. Deal sizes ranged from $150mm up to several $3–4bn tranches, with multiple issuers running full curves from the 3–5yr belly out to 30–50yr. The curve mix was broad: steady 3–7yr funding from FIG, pharma, and industrials, paired with meaningful long-end duration from tech, pipelines, utilities, and select hybrids/perps.

Demand was clearly constructive but disciplined. Most fixed-rate tranches priced roughly 20–35bp inside IPTs with compression typically in the –25bp to –30bp range, and several standout moves (e.g., –38bp to –44bp) in well-followed long-end stories such as WEC, Nisource and select commodity/industrial names. Books generally built to 3–6x coverage, with multiple belly tranches seeing high-single-digit to low-double-digit cover, while some long-dated and higher-beta lines printed on leaner books and heavier order attrition. NICs stayed in low single digits, often 0–5bp, with a noticeable number of negative or flat outcomes across high-quality pharma, FIG, and top-tier tech – signaling that issuers retained strong pricing power versus secondaries.

Sector performance was differentiated but broadly positive. Pharmaceuticals and healthcare (Pfizer, Novartis, Roche, Baxter, VSPOPT, Illumina) printed tight curves with solid books and, in several cases, negative NICs. FIG supply was deep and diverse – U.S. and non-U.S. banks, insurers, and asset managers – with money-center and private-bank deals well absorbed in the belly and light concessions on the curve. Tech/Internet and Communications issuers (Amazon, Alphabet, eBay, ICE, Global Payments, Verizon) took down sizeable size across the curve, with long-end tranches clearing comfortably but at visibly higher attrition as spreads approached the tights. Energy and pipelines (Enbridge, EPD, WMB, TRGP, PAA, Shell, Cenovus, Santos, Targa) also enjoyed healthy demand, particularly in 10–12yr tenors, while utilities and chemicals rounded out the long-duration complex.

Overall, the November tape confirms a credit market that remains open and constructive, but increasingly valuation-sensitive. Investors are still willing to fund large, long-dated transactions for high-quality issuers, yet order cuts and thinner coverage at the back end show that the market is approaching its tolerance for further spread tightening without additional compensation.

 

NOVEMBER 2025 TOMBSTONES

AmeriVet Securities is proud to have served as Co-Manager on over $25 billion of investment grade debt in both USD and EUR for our partners across multiple sectors. AmeriVet continues to deliver high-quality global credit opportunities to our Tier II and Tier III professional investor base.