High-grade debt markets are heating up again, with companies lining up to issue the largest wave of bonds since March. Alphabet (GOOG, Financial) is leading the charge, preparing a $4 billion U.S. bond sale — its first since 2020 — and a separate euro-denominated deal right after. Other blue-chip names like Procter & Gamble (PG, Financial) and D.R. Horton (DHI, Financial) are also jumping in, as investor appetite recovers from early April's tariff shock. In total, 15 companies are expected to tap the market on Monday, a clear sign that stability is returning after a volatile few weeks.
Average high-grade yields, which surged to 5.55% earlier this month after steep tariffs were announced, have since eased to around 5.21%, reflecting renewed optimism. Dealers are now forecasting $35 billion in new U.S. corporate bond sales this week, a big jump from the $6 billion seen during the tariff-driven chaos. Alphabet's bond offering may be split into four parts, with the longest 40-year tranche expected to yield 1 to 1.05 percentage points above Treasuries. Despite sitting on more than $95 billion in cash and marketable securities, Alphabet is aiming to lower its overall funding costs — a move that could pave the way for more aggressive share buybacks and accelerated investments in AI, according to Bloomberg Intelligence analysts.
Meanwhile, Alphabet's upcoming euro bond sale could stretch maturities as far as 29 years, making it one of the longest-dated corporate bonds in Europe this year. Investors are watching closely, as the success of these high-grade deals could set the tone for broader corporate financing trends in the second half of 2025. After a rocky start to April, this rebound signals that companies — and investors — are ready to move forward.
