Investment banking

How a smart corporate bond strategy can fuel long-term growth Taking a targeted approach to bond issuance can connect you to low-cost, stable capital.

When Ileana Chu, head of Debt Capital Markets at Truist Securities, advises clients on entering the corporate bond market, she says she focuses on the wealth of opportunities available to issuers.

“Corporate bond market metrics are near all-time attractive levels right now in terms of both pricing and capacity,” she explains. “It’s one of the largest capital markets in the world, and the availability of capital keeps growing as more investors participate.”

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On-screen text: Ileana Chu, Head of Debt Capital Markets, Truist Securities.

Ileana Chu: Corporate bonds aren’t just about raising capital. They’re about how you raise it, when you raise it, and who you raise it with. Issuing them the right way takes senior expertise, cross-functional partnership, and strategic focus.

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On-screen text: Smarter capital through collaboration.

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Ileana: Our bankers have gone through all different types of cycles.

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Ileana: And we can help you navigate the best execution at that very moment and give you the best advice about the next steps.

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Ileana: Every bond deal that we help execute is important to us. We work across our coverage teams and our sales and trading partners in order to make sure that we’ve thought about every single angle of your execution and how we can best serve your goals.

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Ileana: We analyze your company’s credit story and your peer set to curate a list of investor relationships that align with your goals and market positioning.

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Ileana: Sometimes we’ll find that the best move isn’t a bond. It might be a bank market term loan or an equity-linked instrument, and that’s OK, because we’re not here to push product.

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Ileana: We’re here to find the best solution for you, and we bring the full team to do exactly that. Your success is our success. And we want to ensure that you get the best execution. Because when we’re able to issue corporate bonds with intention, and with the right partners in place, it can transform your debt into more than a tool. It becomes a powerful strategy.

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On-screen text: Truist Securities. Going beyond the expected. Copyright 2025 Truist Financial Corporation. Truist and Truist Securities are service marks of Truist Financial Corporation. All rights reserved. Truist Securities is the trade name for the corporate and investment banking services of Truist Financial Corporation and its subsidiaries. Securities and strategic advisory services are provided by Truist Securities, Inc., member FINRA and SIPC. Lending, financial risk management, and treasury management and payment services are offered by Truist Bank. Deposit products are offered by Truist Bank, Member FDIC.

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Corporate bonds as a competitive advantage

Gaining access to such a deep pool of capital can help companies position themselves ahead of the competition. Chu says corporate bond issuance allows companies to think long-term and be on the offensive when it comes to financing growth initiatives.

“Moving from a secured capital structure funded mainly by bank loans to an unsecured capital structure focused on capital markets gives you more financial flexibility,” notes Chu. “The pricing becomes lower, and the availability and types of capital expand dramatically.”

Once you start accessing the investment-grade corporate bond market, you can return as often as needed to raise capital for future strategic moves. To do that, companies must be rated as investment grade, which means they have a lower probability of default—making them more attractive to investors than companies issuing lower-rated high-yield bonds.

“Investors love the investment-grade bond market because of its safety and liquidity,” says Chu. “There are infrequent, abrupt credit events for issuers within the market. Investors know that it’s unusual for a bond to go quickly from investment grade to default. There are a lot of pit stops along the way.” This reduces volatility for investors and gives them time to buy and sell more thoughtfully.

Investors love the investment-grade bond market because of its safety and liquidity.
— Ileana Chu, Head of Debt Capital Markets, Truist Securities

Achieving an investment-grade rating

Chu explains that moving from issuing high-yield bonds to issuing investment-grade bonds is something she and her team at Truist Securities can help clients achieve. The first step is assessing a client’s goals, financial performance, and market and industry position to determine whether the move makes strategic sense.

“After weighing the pros and cons, we talk about the financial metrics they’ll need to meet,” says Chu. “We have a rating agency advisory team as well as a liability management team that we work with closely to help clients start down the path to becoming investment grade.”

The main characteristic investors are looking for from an investment-grade-bond issuer, according to Chu, is stable or improving credit metrics. Maintaining that stability over the long term is key to both securing and keeping an investment-grade rating. For example, Chu says you’ll want to ensure that your intended mergers and acquisitions (M&A) strategy doesn’t jeopardize your ratings category.

“If you’re a company that’s growing through acquisition, your leverage profile may spike with each transaction,” states Chu. “If you decide you want to be investment grade, you have to commit to maintaining prudent leverage. You can still do M&A, but you’ll need to be selective with each transaction.”

Chu adds that dropping back to high yield from investment grade could cause problems for your investors.

“Different investors hold high-yield bonds than the investors who hold investment-grade bonds,” says Chu. “If you migrate down, many investors will be forced to sell or move your bond to a different part of the institution. And if you’re getting too highly leveraged, they might be selling at a loss.”

The importance of senior-level expertise

Like all capital markets, the corporate bond market can be volatile. Issuers—especially first-time or infrequent issuers—need a strong financial partner to help ensure they get the best possible pricing and execution.

“When things are going smoothly, these are not terribly complex deals,” says Chu. “But when something goes wrong, whether it’s a macroeconomic shift or a change within the company, that’s when you need a seasoned banker—who knows you and your company—to guide next steps.”

At Truist Securities, Chu explains, clients work with the same senior-level bankers from pitch through execution. They also have access to all the capabilities of the Fixed Income Sales & Trading team to help ensure that each bond deal gets in front of relevant investors.

“We take a targeted approach,” says Chu. “We’re not just throwing your bonds out there in hopes of attracting any investor. We analyze your company’s credit story and peer set to curate a list of investor relationships that align with your goals and market positioning.”

That targeted approach not only helps create deals that succeed—it also sets companies up for long-term access to one of the largest financing markets in the world.

Capital solutions built around you

Truist Securities’ team approach also helps companies look beyond corporate bonds if necessary. Your banker listens to your needs first and then works with other product experts to find the best approach to meeting your goals.

“Sometimes when we have discussions with clients, we realize that issuing a corporate bond is not the best answer,” says Chu. “Maybe they should be doing a term loan or an equity-linked instrument. And that’s OK, because we’re not here to push products. Client needs are what drive us.”

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