Goldman Sachs: Global debt issuance rebounded 66% year-over-year in April, after a decline in March.

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Investing.com – According to Goldman Sachs data, after a 2% year-over-year decline in March, global debt issuance rebounded strongly in April, with a 66% year-over-year increase. The main drivers of this rebound are robust issuance of corporate investment-grade bonds and high-yield bonds, driven by factors such as the massive demand for AI infrastructure financing, active merger and acquisition activities, and rising debt refinancing needs.

From the beginning of the year to date, the cumulative global debt issuance has increased by 13% compared to the same period last year. Goldman Sachs pointed out that if recent issuance fluctuations stabilize, this recovery could accelerate revenue growth in the rating businesses of S&P Global (NYSE:SPGI) and Moody’s (NYSE:MCO).

Goldman Sachs forecasts that both companies’ rating business revenues will grow by 7% each by 2026. Goldman also specifically noted that although private credit is not included in standard debt issuance statistics, as market scrutiny of private credit risks intensifies, investor demand for independent credit assessments is steadily rising, making this sector a potential additional source of rating revenue growth.

Goldman Sachs maintains “Buy” ratings on S&P Global and Moody’s, citing the ongoing replenishment of debt refinancing pipelines, the potential rebound in M&A activity, and the continued expansion of the private credit market as strong support for medium-term rating revenue growth. Goldman also expects that both companies’ earnings per share will achieve low to mid-double-digit compound growth.

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