Companies Flock to Issue Record $153 Billion in Bonds as Borrowing Costs Drop, Risks Rise
• Firms issued $153 billion in corporate bonds in January, the most ever recorded in the first weeks of the year going back 30 years
• Borrowing costs have fallen recently as investors demand higher yields ahead of expected Fed rate cuts
• The rush of bond issuance is driven by companies trying to lock in lower rates before the Fed eases policy
• Some experts warn the rapid growth of corporate debt could cause problems down the line
• Defaults on high-yield bonds are expected to total $46 billion this year