Research Quarterly, Third Quarter 2017

Long-term securities issuance totaled $1.76 trillion in 3Q’17, an 8.0 percent decrease from $1.91 trillion in 2Q’17 and a 15.2 percent decrease year-over-year (y-o-y) from $2.07 trillion. Issuance decreased quarter-over-quarter (q-o-q) across all asset classes except mortgage-related, corporate, and agency securities; y-o-y, all asset classes suffered declines in issuance.

Long-term public municipal issuance volume including private placements for 3Q’17 was $87.6 billion, down 18.9 percent from $108.1 billion in 2Q’17 and down 24.0 percent from $115.4 billion in 3Q’16.

The U.S. Treasury issued $463.9 billion in coupons, FRNs and TIPS in 3Q’17, down 18.7 percent from $570.8 billion in the prior quarter and 15.3 percent below $548.0 billion issued in 3Q’16.

Issuance of mortgage-related securities, including agency and non-agency passthroughs and collateralized mortgage obligations, totaled $493.0 billion in the third quarter, a 9.2 percent increase from 2Q’17 ($451.6 billion) but a 14.4 percent decrease y-o-y ($575.9 billion).

Corporate bond issuance totaled $415.7 billion in 3Q’17, up 5.2 percent from $395.0 billion issued in 2Q’17 but down 2.5 percent from 3Q’16’s issuance of $426.3 billion. Of 3Q’17 corporate bond issuance, investment grade issuance was $352.8 billion (84.9 percent of total) while high yield issuance was $62.9 billion (15.1 percent).

Long-term federal agency debt issuance was $185.7 billion in the third quarter, a 11.4 percent increase from $166.7 billion in 2Q’17 but a 27.3 percent decrease from $255.5 billion issued in 3Q’16.

Asset-backed securities issuance totaled $57.5 billion in the third quarter, a decrease of 64.5 percent q-o-q ($161.8 billion) and a 28.3 percent decrease y-o-y ($80.1 billion).

Equity underwriting decreased by 3.3 percent to $51.1 billion in the third quarter from $52.9 billion in 2Q’17 and was down 6.8 percent from $54.9 billion issued in 3Q’16. Of the total, “true” initial public accounted for $4.3 billion, down 50.1 percent from $8.7 billion in 2Q’17 and down 29.5 percent from $6.2 billion in 3Q’16.

2017 Q3: RQ

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
  • VP: Sharon Sung
  • AVP: Justyna Podziemska
  • Intern: Tommy Rodriguez

SIFMA Business Policies and Practices

  • VP: Joseph Cox
  • VP: Craig Griffith