Group 1 - The current favorable conditions have led companies to rush into the bond market for cheap merger financing, resulting in a global M&A financing scale of $113 billion this quarter, the largest in four years and one of the highest on record [1][4] - Merck and GE Healthcare raised a combined $9.25 billion in a single day for acquisitions announced two weeks prior, indicating strong credit sentiment as corporate spreads approach historical lows [1][4] - The pharmaceutical sector has been particularly active, with Novo Nordisk raising €4 billion for the acquisition of Akero Therapeutics and Pfizer selling $6 billion in bonds for the acquisition of Metsera [4] Group 2 - Demand for bonds has been so strong that borrowers do not need to pay a premium even when including clauses for debt buybacks if mergers are not completed on time, reducing the risk of accumulating additional debt if deals fail [4][5] - Companies like Magnum have included clauses in their bonds allowing for early repayment if their spin-off does not finalize by mid-next year, indicating a strategic approach to financing [5] - The return of M&A activity is being strongly felt, with banks underwriting approximately $65 billion in debt related to leveraged buyouts for 2026, and expectations for a broader recovery in M&A activity in 2026 [6]