US Dollar Credit Supply: October Slowdown

(MENAFN- ING) Executive summary

Drop in supply in October, but Reverse Yankee supply continues to impress

USD corporate issuance totalled US$59bn in October, down from US$112bn in September. Despite the slower monthly volume, YTD issuance reached US$1,059bn, exceeding last year's full-year level of US$920bn. Corporate net supply remained positive at US$30bn in October, bringing the YTD total to US$601bn.

TMT remained the largest contributor to USD corporate supply, with US$30bn issued in October and YTD issuance reaching US$435bn, compared with US$208bn over the same period in 2025. Utilities and Industrials & Chemicals remained the next largest issuing sectors, with YTD volumes of US$165bn and US$131bn respectively.

Corporate Reverse Yankee issuance amounted to €6.8bn in October, lifting YTD volume to €104bn. This has already exceeded the €92bn issued during the whole of 2025, making 2026 the largest year on record for corporate Reverse Yankee issuance.

Bank bond supply slowed down in October, but YTD levels remain ahead of 2025

USD bank bond supply reached just over US$52bn in October, down US$18bn from September's level. Last month's activity brings the 2026 YTD bank supply to nearly US$633bn, still well ahead of the 2025 YTD at US$495bn.

The bulk of last month's issuance was printed in the senior non-preferred segment totalling US$36bn. The most significant supply drop stems from both senior preferred and covered segments as issuances were halved compared to the previous month, to stand at US$6bn and nearly US$3bn, respectively. Despite the recent slowdown, USD-denominated covered bond supply stands at nearly US$24bn in 2026 YTD, up US$13bn YoY.

As in the general primary market, we noted a drop in sustainable bank bond supply in October with only US$0.3bn printed (with only one social senior non-preferred bond). This is the second-lowest level recorded since the start of the year. It brings the 2026 YTD USD-denominated sustainable supply to $11bn, slightly behind the 2025 YTD level at US$11.6bn. While both green and social bank bond issuances are lagging that of last year, we note an increase in sustainable bank bond supply with US$2.4bn.

MENAFN10112026000222011065ID1111938728