Top 10 Takeaways from SIFMA’s 2023 Capital Markets Fact Book

Recapping Statistics for US and Global Capital Markets

SIFMA Research recently published our annual Capital Markets Fact Book, which provides a comprehensive look at U.S. capital markets, as well as a look into global markets.

In the U.S., capital markets fuel the economy, providing 71.9% of equity and debt financing for non-financial corporations. Capital markets enable debt issuance, a more efficient, stable, and less restrictive form of lending for corporations. Debt capital markets are more dominant in the U.S. at 75.0% of total financing, whereas bank lending is more dominant in other regions, at 21.3% on average.

Source: OECD, Federal Reserve, ECB, Bank of Japan, National Bureau of Statistics of China
Note: As of 2022, China 2020; Economic activity defined as financing of non-financial corporations. Euro Area = 19 EU-member states using the Euro. Other financing, ex-China = insurance reserves, trade credits and trade advances; other financing, China = bankers’ acceptances, FDI, other foreign A/D, misc. and errors; DCM = debt capital markets, corporate bonds only

The U.S. capital markets are the largest in the world and continue to be among the deepest, most liquid, and most efficient. U.S. equity markets represent 39.8% of the $101.2 trillion in global equity market cap, or $40.3 trillion; this is 3.5x the next largest market, China. U.S. fixed income markets comprise 40.0% of the $129.8 trillion securities outstanding across the globe, or $51.9 trillion; this is 2.3x the next largest market, the EU.

Source: Bank of International Settlements (BIS), World Federation of Exchanges, SIFMA estimates
Note: Market capitalization of listed domestic companies. DM = developed markets, EM = emerging markets, DM/EM exclude countries listed in the chart. HK = Hong Kong

The Top Ten

Here, we highlight the top ten takeaways from our 2023 Capital Markets Fact Book:

Fixed Income Markets

1. Global fixed income markets outstanding increased 2.3% Y/Y to $129.8 trillion, while global long-term fixed income issuance decreased 17.5% to $22.5 trillion. U.S. fixed income markets represented 40.0% of the $129.8 trillion securities outstanding across the globe, or $51.9 trillion; this is 2.3x the next largest market, the EU.

2. U.S. Treasury securities issuance dropped to $3.8 trillion, a 25.5% Y/Y decrease. Total U.S. long-term fixed income issuance declined 34.2% Y/Y to $8.9 trillion; U.S. mortgage-backed securities (MBS) issuance decreased 53.2% Y/Y to $2.1 trillion; and U.S. asset-backed securities (ABS) issuance volume decreased to 48.0% Y/Y to $302.8 billion.

3. U.S. corporate bonds fell 31.0% Y/Y to $1.4 trillion. U.S. municipal bond issuance decreased 19.2% Y/Y to $390.8 billion, while U.S. federal agency securities increased 19.9% Y/Y to $830.9 billion.

Equity Markets

4. Global equity market capitalization decreased 18.6% Y/Y to $101.2 trillion. Global equity issuance declined to $0.4 trillion, a decrease of 61.2% Y/Y. U.S. equity markets represented 39.8% of the $101.2 trillion in global equity market cap, or $40.3 trillion; this is 3.5x the next largest market, China.

5. U.S. initial public offering (IPO) volume was $8.5 billion, down 94.4% Y/Y. Secondary, or follow-on, offerings totaled $78.5 billion, down 64.8% Y/Y. Total equity issuance, including common and preferred stock, totaled $99.4 billion in 2022, a 77.1% decrease Y/Y.

6. Announced U.S. merger and acquisition deals totaled $1.6 trillion in 2022, a 42.6% Y/Y decrease. The value of completed M&A deals decreased 37.5% Y/Y to $16.9 trillion.

7. U.S. stock markets – in terms of index prices – fell in 2022 from record highs in 2021: the Dow Jones Industrial Average (DJIA) fell 8.8% Y/Y, ending the year at 3,147.25; the S&P 500 closed 2022 down 19.4% Y/Y at 3,839.50; the Nasdaq Composite decreased 33.1% Y/Y to close the year at 10,466.48; while the Russell 2000 fell 21.6% Y/Y to end the year at 1,761.25. In 2022, the average daily trading volume for equities was 11.9 billion shares, +4.1% Y/Y.

The Individual Investor

8. The value of U.S. households’ liquid assets decreased 11.0% Y/Y to $58.6 trillion, according to Federal Reserve Board data. The total value of U.S. retirement assets decreased 8.7% Y/Y to $41.8 trillion.

9. 52.6% of households own equities.

The Securities Industry

10. National securities industry employment reached 1,073,500, an increase of 4.2% Y/Y. The number of FINRA registered broker-dealers decreased 0.5% Y/Y to 3,378.

For more, download the full report where we recap:

  • Global Capital Markets: Equity and fixed income markets (outstanding, issuance, volumes); investment banking landscape; international securities transactions; etc.
  • U.S. Capital Markets: Equity, fixed income, derivatives and private placement markets (outstanding, issuance, volumes, index prices); investment banking landscape; mutual fund and ETF statistics; etc.
  • U.S. Investor Participation: Household liquid financial asset breakout; household equity ownership; and holders of equities
  • U.S. Savings & Investment: Retirement asset breakout and mix across asset classes; savings rates and other economic indicators; and federal balance sheet overview
  • US. Securities Industry: Number of broker-dealers, registered representatives, registered investment advisors, and branch offices; industry financial overview; and state maps showing number firms/reps

Katie Kolchin, CFA is Managing Director, Head of Research for SIFMA. A global equity research analyst with a background in market infrastructure and capital markets, she leads the team performing data and analysis work for the Association and is the author of SIFMA Insights.