Salesforce Joins $115B Weekly Investment-Grade Bond Issuance Boom
Salesforce Inc. joined Amazon and Honeywell Aerospace in three blockbuster investment-grade bond offerings that drove US weekly issuance to $115 billion, the highest since 2020’s $117 billion record. Robust investor demand and above-average new issue concessions supported Salesforce’s market access despite soaring yield volatility.
1. Record US Investment-Grade Issuance
US investment-grade bond sales reached $115 billion this week, nearly matching the 2020 peak of $117 billion as corporate borrowers tapped debt markets despite rising yields and oil prices.
2. Salesforce’s Major Bond Offering
Salesforce Inc. was one of three blockbuster issuers alongside Amazon’s $37 billion and Honeywell Aerospace, contributing to the record issuance by launching a significant high-grade bond transaction to refinance debt and extend maturities.
3. Strong Investor Demand and Concessions
Short- and intermediate-term high-grade bond funds attracted $43.4 billion in January and $32.1 billion in February, driving robust order books and allowing issuers like Salesforce to offer new-issue concessions above this year’s average.
4. Funding Implications for Salesforce
By capitalizing on resilient market technicals and strong demand, Salesforce likely secured favorable coupons, lowering its funding costs and improving liquidity to support ongoing investments and acquisitions.