Moody's Poised for Fee Gains as Hybrid Bond Sales Hit $129B Record
Global hybrid bond issuance reached a record $129 billion in the first quarter as fallen yields incentivized companies to tap markets. Moody's could see a corresponding rise in ratings and advisory fee income from the surge in hybrid deals.
1. Record Hybrid Bond Issuance
Global hybrid bond issuance hit $129 billion in Q1, marking the largest quarterly total on record. Companies across utilities, financials and industrials locked in low borrowing costs as yields dipped to multi-year lows, driving a surge in new issue volume.
2. Implications for Moody's Revenue
As a leading ratings provider, Moody’s stands to benefit from increased deal activity through higher ratings and advisory fees. The expanded pipeline of hybrid transactions could lift Moody’s fee income by a mid-single-digit percentage in the upcoming quarter.