NEW YORK — The pipeline for U.S. high-grade corporate bond issuance to fund mergers has fallen to the lowest levels in five years as U.S. President Donald Trump’s trade war deters deals, in what could be a boon for borrowers but a challenge for banks and investors.
Wall Street had expected the Trump administration’s policies such as deregulation and tax cuts to fuel a resurgence in deal activity and add US$250 billion to US$300 billion of investment-grade bonds to fund it this year, up from US$179 billion in 2024, according to interviews with six debt capital markets bankers.
Instead, economic uncertainty due to Trump’s policies, especially the threat of tariffs on U.S. imports, has thrown markets into turmoil, and prompted executives to hit “pause” on deals while they await clarity. U.S. M&A volume in the first quarter fell 3 per cent, Dealogic data shows.
Meghan Graper, global head of debt capital markets at Barclays,…
