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TD Securities Forecasts Record $2.4 Trillion US High-Grade Bond Supply in 2027

TD Securities expects the US high-grade bond market to see record supply of $2.4 trillion in 2027, the firm said. The forecast is supported by increased AI-related spending, mergers and acquisitions, and a growing volume of redemptions.

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AI take

The significance lies in the composition of the forecast: AI-related spending and M&A are being framed as structural supply drivers rather than cyclical issuance, which matters for anyone tracking how corporate balance sheets are being financed. A record high-grade calendar also implies heavier duration absorption by the same fixed-income base that RWA tokenization is courting, so the two trends are competing for the same investor attention. Whether the AI and M&A components actually materialize, or redemptions do most of the work, is the open question.

Generated by AI for reference only.

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