US convertible bond sales have reached a record $108.7 billion in 2025, surpassing the $105.6 billion raised in 2020 during the pandemic. The market's attractiveness stems from high stock volatility and persistent 10-year US Treasury yields above 4%, prompting companies such as Bloom Energy, DoorDash and GameStop to issue sizable convertible bonds.

Download FactSet's free eBook, At the End of It: A Buy-Side Playbook for Reporting Success, to discover actionable strategies for streamlining workflows, enhancing reporting efficiency, and setting your firm on the path to long-term success.

Treasury yields rose Thursday as uncertainty over missing US economic data boosted expectations that the Federal Reserve may hold rates next month, with odds of a December pause rising to roughly 50%. The government shutdown disrupted key releases, including October unemployment and CPI, prompting investors to reassess the policy path as policymakers strike a more cautious tone on inflation.

US stocks suffered their worst day in a month as the relief from the end of the government shutdown faded, with the S&P 500 and Dow Jones Industrial Average dropping 1.7% each and the Nasdaq Composite falling 2.3%. Investors are now worried about a deluge of delayed economic data potentially affecting market stability and the likelihood of an interest rate cut in December, which has dropped to 50%.

Asian shares fell after US Federal Reserve officials' hawkish comments dampened hopes for a rate cut next month. The MSCI Asia Pacific Index fell 1.6% after the S&P 500 saw its biggest drop since April. Investors now see a 51% chance of a rate cut in December, down from 63%.

Federal Reserve officials are signaling growing caution over a potential rate cut in December. Neel Kashkari, who did not support the most recent cut, said he remains undecided as resilient economic data leaves the case for further easing unclear. He noted that arguments can be made for both holding rates steady and cutting, depending on how upcoming data evolves. St. Louis Fed President Alberto Musalem also urged prudence, warning that policy may already be near neutral and that the Fed has limited room to ease without becoming overly accommodative.

FDIC Chair Travis Hill says the agency is working on guidance for tokenized deposit insurance to help financial institutions expand their digital-asset presence. "A deposit is a deposit," Hill said at a Federal Reserve Bank of Philadelphia conference. "Moving a deposit from a traditional-finance world to a blockchain or distributed-ledger world shouldn't change the legal nature of it."

SEC Chair Paul Atkins has announced plans to create a "token taxonomy," signaling a major shift in how digital assets are regulated. The proposal could mean that many tokens will no longer be treated as securities, aligning with recent legislative efforts like the Stablecoin Law and the GENIUS Act. While industry veterans have praised the approach for offering regulatory clarity, investor-protection lawyers have raised concerns about potential risks and the need for robust market-structure legislation.