Davis Polk partner John Meade was quoted in the American Lawyer discussing the debt deal market.

John noted that while the increase in debt issuances is a positive sign, it isn’t necessarily a bellwether of overall deal flow. But it can’t hurt. “The uptick [in debt issuances] clearly demonstrates how strong and resilient the investment-grade debt markets are,” he said. “The high-yield bond market also appears to be showing improved signs of life after a pretty anemic 2023 on the whole.”

“With history as a guide, it seems unlikely to continue at this pace,” he continued. “If anything, the second half could be quieter than normal, if a lot of upcoming maturities that need refinancing have been dealt with in the first half.”

Discussing the current rates, John said, “If economic sentiment and confidence improves, then maybe we could expect more M&A with resulting event-driven financings.”

He continued, noting, “There is not necessarily any great correlation between a healthy investment-grade debt market and a return to a booming IPO market.”

The article also noted that Davis Polk was involved in the most debt offerings in the last week.

“Deal Watch: Davis Polk, Latham and Simpson Land on Rising Debt Deal Work,” American Lawyer (March 4, 2024) (subscription required)

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