US Research Quarterly, Fourth Quarter 2016



March 1, 2017

US Research Quarterly, Fourth Quarter 2016

About the Report

A quarterly report containing brief commentary and statistics on the U.S. capital markets, including but not limited to: municipal debt, U.S. Treasury and agency debt, short-term funding and money market debt, mortgage-related, asset-backed and CDO debt; corporate bonds, equity and other, derivatives, and the primary loan market.

Summary

Long-term securities issuance totaled $1.56 trillion in 4Q’16, a 21.1 percent decrease from $2.0 trillion in 3Q’16 but a 6.5 percent increase year-over-year (y-o-y) from $1.50 trillion. Issuance decreased quarter-over-quarter (q-o-q) across all asset classes but mortgage-related and asset-backed securities; y-o-y, growth was positive in municipal, mortgage-related, asset-backed and equity classes. For the full year 2016, capital markets long-term issuance totaled $7.19 trillion, up 6.5 percent from $6.75 trillion in 2015.

Long-term public municipal issuance volume including private placements for 4Q’16 was $104.9 billion, down 9.1 percent from $115.4 billion in 3Q’16. Full year 2016 issuance was $445.8 billion, an increase of 10.6 percent from $403.1 billion in 2015.

Total gross issuance of Treasury bills and coupons, including cash management bills, Floating Rate Notes and Treasury Inflation-Protected Securities, was $2.10 trillion in 4Q’16, down 1.8 percent from $2.14 trillion in 3Q’16 but a 15.9 percent increase from $1.81 trillion in 4Q’15. For the full year 2016, gross issuance of Treasury securities totaled $8.30 trillion, up 18.8 percent from $7.00 trillion in 2015.

Long-term federal agency debt issuance was $101.4 billion in the fourth quarter, a 55.8 percent decrease from $229.3 billion in 3Q’16 and a 16.5 percent decrease from $121.5 billion issued in 4Q’15. For the full year 2016, issuance was $673.0 billion, up 31.0 percent from $513.5 billion in 2015.

Issuance of mortgage-related securities, including agency and non-agency passthroughs and collateralized mortgage obligations, totaled $557.3 billion in the fourth quarter, a 1.5 percent increase from 3Q’16 ($549.3 billion) and a 45.1 percent increase y-o-y ($361.9 bil-lion). For the full year 2016, mortgage-related securities issuance was $1.9 trillion, an in-crease of 15.9 percent from 2015.

Asset-backed securities issuance totaled $76.4 billion in the fourth quarter, an increase of 1.2 percent q-o-q and 36.3 percent y-o-y. For the full year, issuance was $275.4 billion, a decline of 11.7 percent from the prior year.

Corporate bond issuance totaled $257.5 billion in 4Q’16, down 39.1 percent from $422.7 billion issued in 3Q’16 and 12.7 percent from 4Q’15’s issuance of $294.9 billion. For the full year 2016, corporate bond issuance increased to $1.52 trillion, up 1.8 percent from $1.49 billion in 2015.

Equity underwriting decreased by 15.2 percent to $46.4 billion in the fourth quarter from $54.7 billion in 3Q’16 but increased by 16.5 percent from $39.8 billion issued in 4Q’15. For the full year 2016, equity underwriting totaled $197.0 billion, 23.3 percent below the $256.8 billion in 2015.

Credits

SIFMA Research

  • Managing Director, Director of Research: Kyle Brandon
  • AVP, Research: Sharon Sung
  • Senior Associate, Research: Justyna Podziemska

SIFMA Business Policies and Practices

  • VP: Joseph Cox
  • VP: Craig Griffith
 

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Disclaimer

The Securities Industry and Financial Markets Association (SIFMA) prepared this material for informational purposes only. SIFMA obtained this information from multiple sources believed to be reliable as of the date of publication; SIFMA, however, makes no representations as to the accuracy or completeness of such third party information. SIFMA has no obligation to update, modify or amend this information or to otherwise notify a reader thereof in the event that any such information becomes outdated, inaccurate, or incomplete.


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