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Corporate borrowers kicked off 2025 with a record $83bn in dollar bond sales, capitalising on buoyant investor demand to raise debt ahead of any market volatility sparked by Donald Trump’s return to power.

Borrowing in the US dollar investment-grade and high-yield bond markets reached $83.4bn by January 8, the highest year-to-date figure since 1990, according to data from LSEG.

High-grade borrowers have led the rush, including international banks such as BNP Paribas and Société Générale, car giants such as Toyota, and heavy machinery maker Caterpillar. US banks are expected to join the fray later in January after their earnings season.

“The market is strong, so there is no need for them to delay. They’re trying to come as early as possible,” said Marc Baigneres, global co-head of investment-grade finance at JPMorgan.

The rush of new debt sales comes as spreads — the difference between the yield on corporate debt versus safer government bonds — are near multi-decade lows, spurring companies to raise funds cheaply while they can.

“There are a lot of risks to spreads — inflation picking up, the economy slowing down, the Fed potentially pausing rate cuts and even moving on to rate hikes,” said Maureen O’Connor, global head of Wells Fargo’s high-grade debt syndicate.

The average US investment-grade spread sat at just 0.83 percentage points on Wednesday, not far above its narrowest point since the late 1990s, according to ICE BOFA.

January is typically busy for debt issuance, especially by banks. But the latest deal burst comes as companies lock in cheaper debt before Trump’s inauguration — with economists warning that the incoming US president’s telegraphed policies, including trade tariffs, could be inflationary.

On Wednesday, minutes from the last Federal Reserve meeting showed that officials were also concerned about inflation and wanted to be “careful” with the pace of future rate cuts.

Big borrowers are also under pressure to refinance quickly, with $850bn of high-grade dollar debt set to mature this year and another $1tn in 2026, according to Wells Fargo calculations.

“It’s a very attractive market environment” for borrowers, said Dan Mead, head of Bank of America’s investment-grade syndicate. “You continue to see healthy investor cash balances and receptivity to the new issues coming to market, and pricing at very attractive spreads that leads to issuers looking to go sooner rather than waiting.”

Edward Al-Hussainy, senior interest rate and currency analyst at Columbia Threadneedle, said pension funds and insurance companies were “exceptionally predisposed” at the moment to buy debt.

Banks are typically first to take advantage of narrow spreads and are among the most active issuers so far. But market participants said non-financial borrowers could join the rush before the 10-year Treasury yield — a benchmark for global borrowing costs — rises any further. It now sits at about 4.7 per cent after climbing sharply in recent weeks.

“We have a couple of fairly critical risk events in January,” said O’Connor, pointing to US jobs data due on Friday, which will offer investors clues about the future path of interest rates, and Trump’s January 20 inauguration.

“We’ve heard quite a bit of rhetoric from the incoming administration on what the market could see quickly on the back of that,” O’Connor said. “I think there is a concern that that could catalyse another leg higher in Treasury yields.” Some “coupon-focused borrowers” — meaning companies focused primarily on the total yield they pay to investors — “are trying to get in front of that”, she added.

This week’s volumes, which have been condensed to just three days by shortened trading hours on Thursday, and Friday’s payrolls, follow on from a borrowing bonanza in 2024 — when global issuance of corporate bonds and leveraged loans hit a record $8tn.

While the current conditions remained favourable for sellers of debt, some buyers said they were now willing to sit on the sidelines until more alluring conditions emerge.

“The vast majority of deals are coming at levels that leave very little value on the table,” said Andrzej Skiba, head of BlueBay US fixed income at RBC GAM. “[It has] looked rather unappealing and we prefer to keep powder dry for a potential increase in volatility following the inauguration, as the market finds out this new policy mix and the Fed’s response to that.”

The National Hockey League postponed a game in Los Angeles, and Pasadena’s iconic Rose Bowl Stadium came under evacuation warning as the wildfires burning across Southern California grew Wednesday.

The NHL announced it would indefinitely delay a game between the Los Angeles Kings and Calgary Flames that had been set to take place Wednesday night at Crypto.com Arena in downtown Los Angeles.

In a statement on social media, the Kings said the postponement would help keep fans, staff and players safe.

“Our hearts are with our entire Los Angeles community,” the team wrote, thanking first responders.

An NBA game between the Los Angeles Lakers and Charlotte Hornets is scheduled to take place Thursday at the same arena. As of Wednesday evening, the league had not announced whether it would postpone the game.

“We are in communication with the Lakers and Hornets and continue to closely monitor the situation to determine if any scheduling adjustments are necessary related to tomorrow night’s game,” NBA spokesperson Mike Bass said in a statement to NPR.

Tens of thousands of people are under mandatory evacuation orders across the region. Residents of Pacific Palisades, which include many professional athletes among other celebrities, were told to evacuate on Tuesday.

That included Lakers coach JJ Redick, who said Tuesday his family had evacuated.

“I know a lot of people are freaking out right now, including my family,” he said in a pregame press conference ahead of a game in Dallas. “Thoughts and prayers, for sure, and I hope everybody stays safe.”

The Clippers said their star Kawhi Leonard, who has family in the Los Angeles area, would miss Wednesday’s game in Denver for personal reasons.

Golden State Warriors coach Steve Kerr said his 90-year-old mother was among the evacuees, and that the family home of a Warriors staff member had been destroyed by the fire.

The city’s two NFL teams, the Rams and the Chargers, had each planned to spend this week preparing for a playoff game. Neither team’s practice facility is directly threatened by fire, but smoke has affected air quality around the region.

On Wednesday, the Chargers adjusted its practice schedule to limit time outdoors. The team is set to travel to Houston later this week for a game against the Texans on Saturday.

In case they’re unable to practice entirely, “Coach [Jim] Harbaugh’s got a great Plan B in place if needed,” said Chargers offensive coordinator Greg Roman, speaking to the media on Wednesday.

Some of the team’s personnel have been affected directly, including wide receivers coach Sanjay Lal, who lives in the vicinity of the Palisades Fire.

“Last night was a really intense night for him,” Roman said.

The Rams are set to host their playoff game Monday night against the Minnesota Vikings at home at SoFi Stadium in Inglewood. In a statement, the NFL said there is a contingency plan to move the game to State Farm Stadium in Glendale, Ariz., if necessary.

The Chargers cancelled a pre-playoff fan event scheduled for Friday in Sherman Oaks, north of the Palisades Fire. The team said it would donate $200,000 to relief efforts and asked people attending other fan events to bring donations of bottled water, clothes and toiletries for evacuees.

The historic Rose Bowl stadium in Pasadena, one of the most iconic sites in college football, received an evacuation warning on Wednesday as the Eaton Fire grew to encompass more than 10,000 acres.