Bond supply will be 'robust' but 'digestible', says Goldman

In its latest publication of ‘The Credit Line’ strategy, Goldman Sachs says it expects bond supply in the coming months to be robust but digestible. Strategists note that, after seeing several triple-C rated issues as well as a new 100-year bond issue, the calendar has many investors worried.

Goldman points out, however, that about half of recent issuance is for re-financing activity, so there is less net supply than meets the eye. More importantly, the bank expects that the robust inflows into credit mutual funds as well as strong institutional demand will help demand keep pace with supply.