Bloomberg Surveillance Market Fundamentals Drive Rally and Outline US Eco Risks
Apr 24, 2026
Frances Donald, Chief Economist at RBC, on US and Canadian labor and inflation risks. Winnie Cisar, Global Head of Strategy at CreditInsights, on credit issuance, digestion and positioning. Elisabeth Reynolds, MIT professor and author, on priority technologies, supply chains and public-private roles. Kay Herr, CIO at J.P. Morgan, on market fundamentals, fixed income, issuance dynamics and Fed outlook.
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Episode notes
Revenue And Margins Drive Bond Health
- Strong revenue growth and stable margins matter more for credit than EPS beat narratives.
- Kay Herr notes top-line growth ~7% and margin expansion driving cash flow that supports bond performance.
Record IG Supply Still Finds Buyers
- Record investment grade issuance is being absorbed because demand exceeds supply and new‑issue concessions are tiny.
- Kay Herr cites demand >4x and concessions down to ~2.4 basis points despite heavy tech and data‑center supply.
AI Data Center Deals Are Flooding High Yield
- High-yield issuance tied to AI and data centers has surged but some deals underperform.
- Kay Herr notes ~$35 billion of data‑center related high‑yield issuance and variable post‑deal performance.
