Corporate borrowers returned to the debt markets in droves Thursday, offering more than $9 billion of new investment-grade bonds in a window between volatility earlier this week and an expected gusher of issuance next week.

Leading the charge is unit of mining giant Xstrata Plc (XTA.LN) with a four-part, $3 billion deal; Cigna Corp. (CI), with a three-part $2.1 billion deal to help fund its $3.8 billion acquisition of HealthSpring Inc. (HS); and medical devices maker Becton, Dickinson and Co. (BDX), with $1.5 billion in 5- and 10-year senior notes.

Also in the market are toothpaste and cosmetics maker Colgate-Palmolive Co. (CL), with $1 billion in 3-, 5- and 10-year bonds; and toymaker Mattel Inc. (MAT) with a $600 million, two-part deal to help fund its $680 million acquisition of HiT Entertainment from a consortium led by Apax Partners funds.

Demand is strong because money managers have lots of cash on hand and are under pressure to put it to work in investments that earn decent returns but are still safe. Issuers, meanwhile, are eager to borrow while rates are still low and investors view bonds as a safer alternative to unpredictable stocks and other volatile assets.

"Today's deal flow relates to the expiry of Sept. 30 [earnings] blackout periods, several M&A-oriented financings, a growing recognition that the interest rate opportunity is, indeed, perishable, and the fact that next week is expected to be exceptionally busy as well," said Bryan Jennings, head of fixed income capital markets in the Americas at Morgan Stanley, which is leading deals for Cigna, Becton Dickinson, Colgate-Palmolive, Mattel and Boston Properties, alongside other firms.

Issuance exploded last week after European policy makers announced a rescue deal for Greece, but optimism about the viability of that plan soon faded. Corporate borrowers sold $13.7 billion of bonds last Thursday alone, according to data provider Dealogic, in an end-of-month burst that brought the monthly total to $45.2 billion.

Issuance levels "experienced a resurrection at the end of October as spreads narrowed sharply and yields fell on hopes of a resolution of the European sovereign crisis," David Munves, divisional managing director at Moody's Capital Markets Research Inc., wrote in a note Thursday.

Other recent big-volume days for corporate debt sales include $7.4 billion on Oct. 12 and $12.3 billion on Sept. 14, Dealogic data show.

In addition to the offerings from Xstrata, Cigna, Becton Dickinson, Colgate and Mattel was a $500 million, 10-year deal for privately held food and agricultural products maker Cargill Inc.; an $850 million sale of 7-year debt for the commercial real-estate firm Boston Properties Inc.(BXP), increased from a planned $400 million; and a $250 million deal for Tucson Electric Power Co., a unit of UniSource Energy Corp. (UNS).

-By Katy Burne, Dow Jones Newswires; 212-416-3084; katy.burne@dowjones.com

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