Capital Markets Fact Book, 2019

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.

 

2019 Fact Sheet

Download the 2019 Capital Markets Fact Sheet, highlighting data from the 2019 Capital Markets Fact Book.

2019 Fact Book Highlights

Chapter 1 – U.S. Capital Markets

In 2018, the securities industry raised $2.4 trillion of capital for businesses through debt and equity issuance activity in the United States, a 10.8 percent decrease from the previous year.

  • Equity issuance, including common and preferred shares, totaled $221.2 billion in 2018, a 0.4 percent increase year-over-year. Initial public offering (IPO) volume, excluding closed-end funds, was $49.9 billion in 2018, up 27.1 percent from $39.2 billion in 2017. Follow-on, or secondary, issuance totaled $154.6 billion in 2018, down 0.3 percent from 2017.
  • Issuance of corporate debt, asset-backed securities and non-agency mortgage-backed securities totaled $2.2 trillion in 2018, down 11.8 percent from 2017. Non-convertible corporate debt issuance fell 18.9 percent to $1.3 trillion in 2018, while convertible corporate debt increased 41.8 percent to $38.6 billion. Nonagency mortgage-backed securities grew 20.5 percent
    to $269.9 billion in 2018, while asset-backed securities issuance volume fell 6.1 percent to $516.9 billion.
  • U.S. long-term municipal bond issuance totaled $338.3 billion in 2018, a 24.5 percent decrease from $448.0 billion in 2017. Of the total, 58.2 percent was issued in form of revenue bonds, 36.2 percent in general obligation bonds and the remainder in private placements.
  • U.S. merger and acquisition announced deals totaled $1.7 trillion in 2018, a 23.7 percent increase from the $1.4 trillion in 2017, while the value of completed M&A deals rose by 16.7 percent to $1.9 trillion.
  • The U.S. stock markets had a negative year in 2018: the Dow Jones Industrial Average fell by 5.6 percent, ending the year at 23,327.46, the Standard & Poor’s 500 Index was down 6.2 percent to close 2018 at 2,506.85; and the NASDAQ Composite Index decreased by 3.9 percent to 6,635.28.
  • In 2018, the average daily volume for NYSE-listed stocks was $149.7 billion and 3.6 billion shares, up 18.4 percent and 6.3 percent, respectively, year-over-year. For NASDAQ-listed stocks the average daily volume was $121.1 billion and 2.3 billlion shares, up 45.2 percent and 17.3 percent, respectively, year-over-year.

Chapter 2 – Global Capital Markets

Global long-term bond market issuance increased by 3.2 percent to $20.4 trillion in 2018 while the global equity issuance decreased by 18.0 percent to $560.6 billion.

Global bond markets outstanding value increased by 2.3 percent to $104.2 trillion while global equity market capitalization decreased by 12.5 percent year-over-year to $74.7 trillion in 2018.

U.S. gross activity (purchases and sales) in foreign securities increased to $33.9 trillion in 2018, up 24.1 percent from 2017. Foreign gross activity in U.S. securities also increased by 16.6 percent to $73.0 trillion for 2018.

Chapter 3 – Investor Participation

Federal Reserve Board data showed the value of U.S households’ liquid assets decreased by 1.6 percent to $42.2 trillion in 2018 from $42.9 trillion in 2017. Of total liquid assets held by U.S. households, 38.2 percent was in equities, 26.4 percent in bank deposits and CDs and 18.5 percent in mutual funds, with the remainder split between U.S. Treasury securities; agency & GSE securities; municipal bonds; money market funds; and corporate bonds.

Chapter 4 – Savings & Investment

Total value of U.S. retirement assets decreased 1.4 percent to $34.6 trillion in 2018, according to Federal Reserve Flow of Funds accounts. Total pension assets fell 0.3 percent to $25.8 trillion and assets held in individual retirement accounts declined by 4.3 percent to $8.8 trillion.

Chapter 5 – U.S. Securities Industry

Pre-tax net income (profits) for all FINRA-registered broker-dealers doing a public business in the U.S. rose to $44.7 billion in 2018, up 17.0 percent from $38.2 billion in 2017. Gross revenues totaled $367.0 billion in 2018, up 18.9 percent from the previous year, while total expenses rose by 19.2 percent to $322.2 billion. National securities industry employment, as reported by the U.S. Department of Labor, reached 970,100 jobs in December 2018, rising by 2.7 percent year-over-year.

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.

Credits

SIFMA Research

Katie Kolchin, CFA
Justyna Podziemska, Assistant Vice President, Research