Capital Markets Fact Book, 2022

Capital markets recognize and drive funds to the best ideas and enterprises. Coupled with the free flow of capital, innovation is an integral component of job creation, economic development, and prosperity. Markets facilitate the transfer of funds from those who seek a return on their assets to those who need capital to expand.

Clients benefiting from healthy capital markets include not just individual investors but also institutional investors, governments, and corporations. Capital, raised through equity and debt, can be used to grow businesses, finance investments in new property, equipment, technology, and fund infrastructure projects. This funding creates jobs and pours money into the economy. Additionally, individuals and businesses can invest in securities to generate wealth.

The SIFMA Capital Markets Fact Book is an annual reference containing comprehensive data on the capital markets, investor participation, savings and investment, and securities industry.



Fact Book Highlights

Section 1 – Global Capital Markets

Global fixed income markets outstanding increased 3.3% Y/Y to $126.9 trillion in 2021, while global long-term fixed income issuance decreased 3.7% to $26.8 trillion.

Global equity market capitalization increased 16.6% Y/Y to $124.4 trillion in 2021, as global equity issuance rose to $1.0 trillion, an increase of 25.6% Y/Y.

U.S. gross activity (purchases and sales) in foreign securities increased to $52.8 trillion in 2021, +14.6% Y/Y, while foreign gross activity in U.S. securities grew to $126.7 trillion (+28.9% Y/Y) in 2021.

Section 2 – U.S. Capital Markets

In 2021, U.S. Treasury securities issuance reached $5.1 trillion, a 31.9% increase from the prior year. Long-term fixed income issuance rose 7.7% Y/Y to $13.4 trillion, while mortgage-backed securities (MBS) issuance increased 7.3% Y/Y to $4.6 trillion. However, corporate bonds fell 13.9% Y/Y to $2.0 trillion. U.S. long-term municipal bond issuance decreased 0.9% Y/Y to $480.4 billion, while federal agency securities decreased 44.6% Y/Y to $692.9 billion. Meanwhile, asset-backed securities issuance volume rose 91.2% Y/Y to $581.9 billion.

Initial public offering (IPO) volume was $153.5 billion, up 79.7% from the previous year. Follow-on, or secondary, issuance totaled $224.7 billion, down 13.0% Y/Y. Altogether, equity issuance, including common and preferred shares, totaled $436.2 billion in 2021, an 11.7% increase Y/Y. Announced U.S. merger and acquisition deals totaled $2.6 trillion in 2021, a 76.2% Y/Y increase, while the value of completed M&A deals increased 17.8% Y/Y to $10.1 trillion.

U.S. stock markets set record highs in 2021: the Dow Jones Industrial Average (DJIA) rose 18.7% Y/Y, ending the year at 36,338.30; the S&P 500 Index closed 2021 up 26.9% Y/Y at 4,766.81; the Nasdaq Composite Index increased 26.6% Y/Y to close the year at 16,320.08; while the Russell 2000 Index gained 13.7% Y/Y to end the year at 2,245.31. In 2021, the average daily trading volume for equities was 11.4 billion shares, +4.4% Y/Y.

Section 3 – U.S. Investor Participation

Federal Reserve Board data showed the value of U.S households’ liquid assets increased 13.8% Y/Y to $65.7 trillion. Of the total liquid assets held by U.S. households, 48.7% were in equities, 23.5% in bank deposits and CDs, and 19.4% in mutual funds, with the remaining 8.4% split between U.S. Treasury securities, agency & GSE securities, municipal bonds, money market funds, and corporate bonds. Of note, 52.6% of households own equities.

Section 4 – Savings & Investment

The total value of U.S. retirement assets increased 8.3% Y/Y to $45.8 trillion in 2021. Total pension assets rose 6.4% Y/Y to $31.9 trillion, while assets held in individual retirement accounts (IRAs) increased 12.8% Y/Y to $13.9 trillion. Of total U.S. retirement assets, 30.4% were in IRAs, followed by 28.8% in private pensions (defined benefit and contribution plans).

Section 5 – U.S. Securities Industry

The number of FINRA registered broker-dealers decreased 1.2% Y/Y to 3,394 in 2021.

Gross revenues for FINRA registered broker-dealers totaled $398.6 billion in 2021, +10.1% Y/Y, while total expenses increased 7.8% Y/Y to $306.8 billion. As such, pre-tax net income rose to $91.8 billion in 2021, +18.8% Y/Y.

National securities industry employment reached 1,016,900 jobs in 2021, an increase of 4.6% Y/Y.

About the Report

The SIFMA Capital Markets Fact Book is an annual reference containing comprehensive data on the capital markets, investor participation, savings and investment, and securities industry. The Fact Book amasses data from dozens of sources into a single, easily accessible reference tool to analyze key industry statistics.


SIFMA Research

Katie Kolchin, CFA, Director of Research
Justyna Podziemska
Daniel Hadley