The U.S. primary credit market has entered its most competitive phase on record as of February 2026. A massive surge in investor appetite for new corporate bonds is reshaping how debt is allocated and traded. Recent analysis of over one million investor records shows that competition for high-grade and junk bonds has reached all-time highs. This intensity is driven by a larger pool of funds, increased participation from U.S. life insurers, and a 10% year-over-year growth in holdings by foreign investors. Market performance indicators as of late February 2026: U.S. Corporate Bond Spreads are hovering near historical lows at approximately 0.80%. This compression highlights the extreme demand, as investors accept lower risk premiums to secure holdings. Year-to-date issuance for 2026 has already reached $239.4 billion, marking a 2.5% increase over the previous year. High-yield supply is leading the growth, up 28% compared to the same period in 2025. Secondary market activity is rising sharply. Daily trading volume has averaged $70.3 billion so far this year, a 25% increase from early 2025. The surge in competition has fundamentally changed the landscape for individual and institutional buyers. New bond offerings are "selling out" faster and to a more diverse base, leading to significantly tighter allocations. In the high-grade market, competition has intensified by 15% compared to baseline 2017 levels. The high-yield or "junk" segment has seen an even steeper jump of 30%. The most liquid sectors—including technology, banking, and capital goods—are experiencing the highest competitive pressure, with increases of up to 35%. This primary market squeeze is forcing many participants into the secondary market. Investors who miss out on initial allocations are repositioning quickly. Turnover for bond deals exceeding $1 billion has jumped to 26% within the first 10 days of issuance, nearly double the levels seen a few years ago. Speed of execution has also accelerated. The time required for the first secondary market trade after a bond is issued has dropped to just 20 to 30 minutes, compared to an hour in previous cycles. Looking ahead, experts anticipate record-breaking gross supply for the remainder of 2026. Corporate issuance is expected to be fueled by high refinancing needs, a 20% projected growth in M&A activity, and massive capital expenditures related to artificial intelligence and infrastructure. While the primary market shows signs of temporary slowing in late February, with weekly investment-grade supply dipping to $28 billion, the broader trend remains dominated by heavy demand and tightening spreads. Intermediate-duration bonds, particularly those rated BBB and BB, currently offer the most attractive carry for yield-driven investors in this environment.