(Bloomberg) – Hours after US Treasury Secretary Steven Mnuchin called for emergency loan programs to be phased out, corporate bond investors inundated Carnival Corp. bankers. continue to have more than $ 11 billion in debt contracts with no collateral protection For some, it was a sign that credit markets are not so fragile after all. After US companies with roughly $ 2 trillion in borrowing added cash to their balance sheets to weather the pandemic, investors have become increasingly confident – perhaps even complacent – that those forecast by many earlier this year were widespread Company failures were largely avoided. Granted, the Fed helped fuel almost all debt issuance, and investor demand helped it. And even if the Federal Reserve returns the immediate lifeline of $ 580 billion in backstop funds to the Treasury Department, traders are betting that the markets will do just fine, expecting the government to intervene again if new signs of Stress emerge. “The reality is that the Treasury Secretary can re-authorize the Fed to reopen the facility if things go crazy and spreads widen,” said Patrick Leary, chief marketing strategist at Incapital. “It’s more a matter of trust for the marketplace as it may not be the best time for virus outbreaks and downtime, but it’s not that these facilities are no longer used to support market functioning.” Read more: Mnuchin’s Efforts Seen As After dampening the impact on CreditCarnival, an exchange of blows for companies hardest hit by the pandemic, nearly $ 9 billion was raised through bond and loan issuance earlier this year covered by their idle ships, some with coupons over 10%. This week there was a 7.625% borrowing with no asset mortgage. The offer followed a capital increase, one of many the cruise operator used to fund its way through the pandemic. Investors placed more than $ 11 billion in orders to sell $ 2 billion in bonds this week, denominated in both US dollars and euros. according to people with knowledge of the business who have asked not to be identified as the details are private. JPMorgan Chase & Co, who led the bond sale, and Carnival declined to comment: “This is a strong indication that liquidity is still plentiful,” said Ben Emons, chief executive of global macro strategy for Medley Global Advisors, prior to the Sale has been completed. “There are still no signs of the capital markets closing.” That doesn’t mean that credit investors were happy with Mnuchin’s claims. Known as the Markit CDX Investment Grade Index, the measure of US credit risk rose the most since October 28 on Friday. However, this index, which is rising as investors’ fears grow, is trading at about a third of the level it reached at the height of the market turmoil in March. “Back to normal” The US corporate bond purchase program was previously extended from an earlier September 30 end date. Market participants had expected further expansion given the economic impact of a recent surge in Covid-19 cases and are still counting on support from the Fed. The central bank wants to keep its facilities running in the face of what is known as the “deadlock” in the economy. tense and vulnerable state. Some investors are already anticipating the possibility of a new finance minister in the Biden administration to reintroduce such programs. In the meantime, however, the market is poised to stand on its own two feet, said Matt Brill, director of US investment grade credit at Invesco Ltd. Corporations have used the record lows to properly size their balance sheets and the Fed won’t be far out of reach, he said, “We need to wean ourselves off the drug here, and this is an important step in making that happen.” “Said Brill. “At some point we have to get back to normal, which means the Fed is not supporting the bond market on a daily basis.” USAmerican Bath has slated a $ 335 million junk bond sale to fund Centerbridge Partners’ acquisition Dan Fabian, president of credit-oriented wealth management firm Alcentra, says the private companies putting it in its European direct loan funds and North America funded appear to be performing relatively well, even as Covid-19 infections pick up again. No Corporations Expect To Do It According to an informal survey of debt underwriters, tapping into the U.S. investment-grade primary market on Friday as revenue from $ 40 billion this week may slow to nothing through the U.S. Thanksgiving holiday . Click here to go to the New Issue Monitor. More information can be found here for the Credit Daybook AmericasEuropeEuropean credit markets have cleared all worries over divisions between European Union leaders over a huge stimulus package as well as signs of problems with the Brexit negotiations and investment grade loans, although the investment grade benchmark widened slightly at the end of the European day. “These issues are minor from a credit standpoint.” Juan Valencia, a credit strategist at Societe Generale, said in email comments. “The most important thing now is economic expectations and the amount of money that has yet to be invested in the system. Euro deals are in strong demand and the ECB continues to buy corporate loans. “The first European issue continued on Friday. Eight new deals in the market helped push the weekly volume to over 30 billion euros ($ 36 billion). The Co-Op Bank gives junk-linked investors the option to purchase senior bank debt and potentially offers £ 200 million ($ 265.5 million) in bonds that are seven steps below investment grade by Moody’s Investors ServiceAsia be rated. In Asia, there were signs that many market participants are still betting on the pandemic. Decision-makers for investment-grade dollar bonds have hardly changed. Traders said, “There will be a new president in January 2021 and there will be a stimulus package,” said Todd Schubert, Head of Fixed Income Research at Bank of Singapore Ltd. “We believe investors should look beyond these short-term events. When prices fall, view them as buying opportunities for what we believe is a sol id year for emerging market loans worldwide in 2021. ”Tokyo-based Kirin Holdings Co. has assessed green notes whose proceeds will improve among other things energy efficiency is used in its factories. Only a handful of beverage companies worldwide have issued sustainable bonds. 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