Market Insider

This market has had a wild start to the new year

Strap in for a volatile year in bonds, equities: Expert

The corporate debt market is kicking off the new year with a bang.

Companies have issued a whopping $88.6 billion in high-grade debt in 48 deals since Jan. 2. The first week of the year started off at a record pace, but the month-to-date total is second only to the record $92.1 billion in the same period last year. Last year, there were just 34 deals but the total volume was inflated by a $46 billion AB InBev deal.

Another $26 billion could come to market next week, according to estimates from Informa. The beginning of the year is normally an active period, but the amount issued so far is already more than half the $125.6 billion issued during the full month of January 2016 — and that was also a record, according to data analysis firm Informa Global Markets.

The gusher of new debt also coincidentally comes as Congress is about to discuss corporate tax reform, which could include eliminating the deductibility of interest paid on debt.