This often results in deterioration of balance sheets as companies borrow more and leverage themselves up.
Two of the largest ever investment-grade bond deals came to the market in 2013, with Apple issuing $17bn (£10.3bn) in April and Verizon selling a colossal $49bn in September. Mr Murfin believes this trend could accelerate in 2014, which will have repercussions for credit spreads.
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“Investment bond yields have done very well since 2009, so there’s not much of a cushion to compensate you if companies decide to embark on an aggressive re-leveraging exercise,” he cautions.
Alison Warner is a freelance journalist
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