Credit investors are turning more optimistic that the Federal Reserve will pull inflation under control without shoving the US economy into a deep recession.

January’s optimism about the bond market seems like a long time ago.

Tesla Inc. has secured a new $5 billion revolving credit facility, another sign that the company is nearing investment-grade status.

Banks globally are finding there are fewer corporate acquisitions to finance now, forcing lenders to focus on a less lucrative business: giving loans to corporations looking to cover rising expenses amid high inflation.

Meta Platforms Inc., one of the few S&P 500 companies without debt, is selling $10 billion in its first ever corporate bond sale as its cash flow and stock price fall.

Markets have already priced in a 50-basis-point hike on Wednesday, expecting the Fed will take a quicker approach in order to squash stubborn inflation. Accelerating U.S. labor costs and a resilient consumer are effectively giving the central bank the green light to raise interest rates by a half-point next week to tamp down price pressures.