Research Quarterly, Second Quarter 2017

Long-term securities issuance totaled $1.73 trillion in 2Q’17, a 9.8 percent decrease from $1.92 trillion in 1Q’17 and a 12.8 percent decrease year-over-year (y-o-y) from $1.98 trillion. Issuance decreased quarter-over-quarter (q-o-q) across all asset classes but municipal, agency and asset-backed securities; y-o-y, growth was negative in all asset classes except asset-backed securities and equity underwriting.

Long-term public municipal issuance volume including private placements for 2Q’17 was $105.1 billion, up 15.4 percent from $91.2 billion in 1Q’17 but down 16.2 percent from 2Q’16.

The U.S. Treasury issued $570.8 billion in coupons, FRNs and TIPS in 2Q’17, down 12.7 percent from $654.1 billion in the prior quarter and 3.5 percent below $591.6 billion issued in 2Q’16.

Issuance of mortgage-related securities, including agency and non-agency passthroughs and collateralized mortgage obligations, totaled $364.4 billion in the second quarter, a 10.4 percent decline from 1Q’17 ($406.8 billion) and an 18.2 percent decrease y-o-y ($445.5 billion).

Corporate bond issuance totaled $390.7 billion in 2Q’17, down 18.2 percent from $477.4 billion issued in 1Q’17 and down 10.7 percent from 2Q’16’s issuance of $437.5 billion. Of 2Q’17 corporate bond issuance, investment grade issuance was $325.6 billion (83.3 percent of total) while high yield issuance was $65.1 billion (16.7 percent).

Long-term federal agency debt issuance was $164.4 billion in the second quarter, an 8.7% percent increase from $151.2 billion in 1Q’17 and a 36.3 percent decrease from $258.0 billion issued in 2Q’16.

Asset-backed securities issuance totaled $81.5 billion in the second quarter, an increase of 6.6 percent q-o-q and a 12.1 percent increase y-o-y.

Equity underwriting decreased by 12.7 percent to $51.7 billion in the second quarter from $59.2 billion in 1Q’17 and up 0.6 percent from $51.4 billion issued in 2Q’16. Of the total, “true” initial public accounted for $8.6 billion, down 19.8 percent from $10.8 billion in 1Q’17 and up 41.3 percent from $6.1 billion in 2Q’16.

Issuance in the US Capital Markets – 2Q’17 vs 2Q’16

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.

Credits

SIFMA Research

  • Managing Director, Director of Research: Kyle Brandon
  • AVP: Sharon Sung
  • Senior Associate: Justyna Podziemska
  • Intern: Emily Losi
  • Municipal ULF Intern: Cindy Gu
  • Municipal ULF Intern: Nahida Sarkar

SIFMA Business Policies and Practices

  • VP: Joseph Cox
  • VP: Craig Griffith