Chicago, IL – As the 2024 U.S. presidential election approaches, corporate borrowers are seizing the opportunity to secure financing before the anticipated market volatility hits its peak. ARC Capital Venture LLC, a leading provider of access to high-yield bonds and fixed income solutions, is seeing a sharp increase in companies seeking to raise funds while market conditions remain favourable.
According to ARC Capital, the U.S. dollar bond issuance for this year has already reached $606 billion—a notable 40% increase from the same period in 2023, marking the highest total seen since 1990. This surge reflects a combination of the most favourable spreads in years and the urgency to avoid potential disruptions.
“Companies are making proactive moves to secure capital before the election,” said Nicos Kezarides, Chief Executive Officer of ARC Capital. “We’re witnessing a significant rise in bond issuances as borrowers aim to take advantage of narrow credit spreads and strong demand, avoiding the unpredictable landscape that could emerge during the final stages of the election.”
These conditions present a compelling case for businesses to bring forward their funding plans, ensuring they are well-positioned regardless of potential market turbulence in the months ahead.
“The bond market is presenting a prime window of opportunity,” said Michael Burgess, Senior Consultant at ARC Capital. “Credit spreads are at historically tight levels, and with the Federal Reserve expected to ease monetary policy later this year, companies are locking in favourable terms now. The timing couldn’t be more crucial as the election nears.”
ARC Capital emphasizes that companies across industries, from automotive and banking to construction, are taking steps to secure their financing early. This rush mirrors the activity seen in the futures markets, where traders are anticipating a sharp increase in volatility as the election day draws near.
“There’s a prudent strategy at play here,” Burgess added. “Businesses are recognizing that waiting until the second half of the year introduces unnecessary risk. By securing their funding now, they can mitigate the uncertainties of both the election and any possible economic slowdown in late 2024.”
ARC Capital continues to support its clients with tailored bond and fixed-income solutions to meet their financing needs in this pivotal period. With its deep market expertise and commitment to providing high-yield opportunities, ARC Capital is uniquely positioned to help companies navigate the evolving financial landscape.
For more information on ARC Capital services and market insights, please visit www.arc-capital.com or contact our team at info@arc-capital.com.
This press release does not provide general or personal financial product advice, nor does it constitute a recommendation to engage in transactions or invest in fixed income securities. It should not be considered as a solicitation. Before making any investment decisions related to fixed-income securities, investors are advised to consult with their financial adviser and seek independent tax advice, considering their individual needs and financial circumstances.
Media Relations
ARC Capital Venture LLC
Max Harrington
max.harrington@arc-capital.com
+1 (312) 820-1040
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Tribune Digest journalist was involved in the writing and production of this article.