JPMorgan Chase has scheduled debt offerings exceeding $30 billion in the coming week, targeting junk bonds and leveraged loans to fund the buyouts of Electronic Arts, Sealed Air and Qualtrics. Additional merger-driven transactions are in preparatory stages, suggesting a sustained deal flow in leveraged finance.

Chief Executive Officer Jamie Dimon has repeatedly cautioned that the credit cycle will weaken, with higher oil prices from geopolitical tensions stoking inflation fears and AI-related valuation declines pressuring software sector borrowers. These headwinds underscore the challenge of placing large LBO financings.

Bankers are confident investors will look past market volatility and seek attractive yields, especially if deals are priced at discounts. The influx of dry powder from maturing securities and repaid debt—such as the $17.5 billion returned by two Musk-affiliated companies—could bolster demand for new issues.

In the Electronic Arts loan, investors are being offered debt at 98.5 to 99 cents on the dollar, with underwriters prepared to lower pricing further to secure allocations in a choppy market. Early marketing efforts included high-level roadshows, bringing EA’s CEO face-to-face with major leveraged finance funds.