May 9, 2025 11:20 PM IST
US Stock Market LIVE: Citigroup, Barclays see ‘mountain of money’ for risky debt
Top bankers from Citigroup Inc. and Barclays Plc who are underwriting new deals see investors ready to jump on risky debt, despite expectations of an economic slowdown.
“There’s a lot of liquidity in the bond market,” Citigroup’s head of debt capital markets, Richard Zogheb, said in a Bloomberg Television interview Friday. “You’ve got north of a $1 trillion in private credit, and well north, multiple trillions in fixed-income markets, the regular way fixed-income markets, that’s available to be invested.”
There’s a lot of money in short-term money markets that is ready to move into assets that are higher yielding, albeit more risky in an environment that many investors see as slowing, Zogheb said.
Yet the Federal Reserve is expected to cut rates further this year, with the market pricing in at least two cuts through the end of 2025. Fed funds futures last month were pricing in as much as four cuts.