FINRA TRACE · 29 August 2026 · Source: FINRA
Key Data — 29 August 2026
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– YTD 2026 corporate bond trading (through July): $68.1 billion average daily volume (ADV), +14.4% year-over-year
– YTD 2026 corporate bond issuance (through July): $1,681.0 billion, +26.9% year-over-year
– US corporate bond market outstanding (as of Q1 2026): $11.7 trillion, +3.0% year-over-year
– August 2026 investment grade issuance: Record $145.2 billion, surpassing August 2020’s $136 billion
– High yield OAS: 281 bps entering August (richest decile historically; long-run median ~450 bps); Investment grade spreads: 81 bps; BBBs at 100 bps
– Weekly returns (late August): Bloomberg US Aggregate Bond Index -0.10%; IG corporates -0.15%; HY -0.15%
– 10-year Treasury yield: Rose to 4.73% (as of 21 August)
– Bloomberg US Corporate Bond Index average yield: North of 5%
– *Specific daily volume, advances/declines, and most actively traded bonds for 29 August 2026: Not available in search results*
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– YTD 2026 corporate bond trading (through July): $68.1 billion average daily volume (ADV), +14.4% year-over-year
– YTD 2026 corporate bond issuance (through July): $1,681.0 billion, +26.9% year-over-year
– US corporate bond market outstanding (as of Q1 2026): $11.7 trillion, +3.0% year-over-year
– August 2026 investment grade issuance: Record $145.2 billion, surpassing August 2020’s $136 billion
– High yield OAS: 281 bps entering August (richest decile historically; long-run median ~450 bps); Investment grade spreads: 81 bps; BBBs at 100 bps
– Weekly returns (late August): Bloomberg US Aggregate Bond Index -0.10%; IG corporates -0.15%; HY -0.15%
– 10-year Treasury yield: Rose to 4.73% (as of 21 August)
– Bloomberg US Corporate Bond Index average yield: North of 5%
– *Specific daily volume, advances/declines, and most actively traded bonds for 29 August 2026: Not available in search results*
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The US corporate bond market concluded August 2026 in a state of heightened activity, with record issuance volumes underscoring robust demand for corporate credit even as Treasury yields remained elevated and fresh geopolitical tensions clouded the outlook for risk assets.
Investment-grade bond sales set a third consecutive monthly record, continuing the market’s fastest pace of issuance as spending on the artificial-intelligence buildout fuels corporate borrowing. The deluge of supply, which has characterised much of the year, reflects companies’ eagerness to lock in financing whilst spreads remain historically compressed. Investment grade issuance hit a record August pace above $145 billion, whilst Europe witnessed its busiest post-summer restart on record.
Trading volumes have kept pace with the surge in primary market activity. SIFMA data indicate that average daily trading volumes through July reached $68.1 billion, representing a 14.4 per cent increase compared with the same period last year. The year has also seen remarkable issuance growth, with $1,681.0 billion in corporate bonds issued through July, a gain of 26.9 per cent year-on-year.
Credit spreads, however, tell a more cautionary tale. High yield enters August 2026 priced close to perfection, with the index option-adjusted spread of 281 basis points sitting in the richest decile of its history against a long-run median near 450 basis points. Investment grade trades at 81 basis points and BBBs at 100 basis points, putting the high yield to investment grade ratio near 3.5 times, roughly in line with its long-run average. Such valuations suggest investors are receiving scant compensation for credit risk relative to historical norms.
The macroeconomic backdrop remains mixed. Bloomberg’s Wall Street Week newsletter on 29 August highlighted the summer of rising yields, featuring analysis from DWS’s David Bianco on the steepening yield curve. The collapse of US-Canada trade talks has introduced fresh uncertainty for growth, with analysts forecasting the 10-year Treasury yield to end 2026 between 4.25 and 4.50 per cent.
Market sentiment in the final week of August proved subdued. Returns were negative across most fixed income sectors as rates edged higher, with investment grade corporates returning minus 0.15 per cent, high yield minus 0.15 per cent, and the Bloomberg US Aggregate Bond Index minus 0.10 per cent for the week.
Fund managers remain cautiously positioned. Vanguard favours banks and utilities within investment grade whilst maintaining limited US high yield exposure. Charles Schwab continues to see opportunities in investment grade corporate bonds, high yield corporate bonds, and preferred securities, noting that investment grade bonds can play an important role for investors seeking income with a relatively higher-quality profile.
Despite compressed spreads, the appeal of all-in yields above 5 per cent on the Bloomberg US Corporate Bond Index continues to attract buyers. Credit fundamentals remain sound even as investment grade spreads widen modestly on heavy supply. Nevertheless, with valuations stretched and trade tensions escalating, market participants appear increasingly selective as the autumn approaches.
The US corporate bond market concluded August 2026 in a state of heightened activity, with record issuance volumes underscoring robust demand for corporate credit even as Treasury yields remained elevated and fresh geopolitical tensions clouded the outlook for risk assets.
Investment-grade bond sales set a third consecutive monthly record, continuing the market’s fastest pace of issuance as spending on the artificial-intelligence buildout fuels corporate borrowing. The deluge of supply, which has characterised much of the year, reflects companies’ eagerness to lock in financing whilst spreads remain historically compressed. Investment grade issuance hit a record August pace above $145 billion, whilst Europe witnessed its busiest post-summer restart on record.
Trading volumes have kept pace with the surge in primary market activity. SIFMA data indicate that average daily trading volumes through July reached $68.1 billion, representing a 14.4 per cent increase compared with the same period last year. The year has also seen remarkable issuance growth, with $1,681.0 billion in corporate bonds issued through July, a gain of 26.9 per cent year-on-year.
Credit spreads, however, tell a more cautionary tale. High yield enters August 2026 priced close to perfection, with the index option-adjusted spread of 281 basis points sitting in the richest decile of its history against a long-run median near 450 basis points. Investment grade trades at 81 basis points and BBBs at 100 basis points, putting the high yield to investment grade ratio near 3.5 times, roughly in line with its long-run average. Such valuations suggest investors are receiving scant compensation for credit risk relative to historical norms.
The macroeconomic backdrop remains mixed. Bloomberg’s Wall Street Week newsletter on 29 August highlighted the summer of rising yields, featuring analysis from DWS’s David Bianco on the steepening yield curve. The collapse of US-Canada trade talks has introduced fresh uncertainty for growth, with analysts forecasting the 10-year Treasury yield to end 2026 between 4.25 and 4.50 per cent.
Market sentiment in the final week of August proved subdued. Returns were negative across most fixed income sectors as rates edged higher, with investment grade corporates returning minus 0.15 per cent, high yield minus 0.15 per cent, and the Bloomberg US Aggregate Bond Index minus 0.10 per cent for the week.
Fund managers remain cautiously positioned. Vanguard favours banks and utilities within investment grade whilst maintaining limited US high yield exposure. Charles Schwab continues to see opportunities in investment grade corporate bonds, high yield corporate bonds, and preferred securities, noting that investment grade bonds can play an important role for investors seeking income with a relatively higher-quality profile.
Despite compressed spreads, the appeal of all-in yields above 5 per cent on the Bloomberg US Corporate Bond Index continues to attract buyers. Credit fundamentals remain sound even as investment grade spreads widen modestly on heavy supply. Nevertheless, with valuations stretched and trade tensions escalating, market participants appear increasingly selective as the autumn approaches.
Data sourced from FINRA TRACE via public market activity reports. For non-commercial informational use only.