Research Quarterly, Third Quarter 2018

Long-term securities issuance totaled $1.90 trillion in 3Q’18, an 6.4 percent decrease quarter-over-quarter (q-o-q) from $2.03 trillion in 2Q’18 but a 3.2 percent increase year-over-year (y-o-y) from $1.84 trillion in 3Q’17.

Long-term public municipal issuance volume including private placements for 3Q’18 was $85.8 billion, down 13.6 percent from $99.3 billion in 2Q’18 and down 6.8 percent from $92.1 billion in 3Q’17.

The U.S. Treasury issued $654.9 billion in coupons, Floating Rate Notes and Treasury Inflation Protected Securities in 3Q’18, down 1.1 percent from $662.5 billion in the prior quarter but 41.2 percent above $463.9 billion issued in 3Q’17.

Issuance of mortgage-related securities, including agency and non-agency passthroughs and collateralized mortgage obligations, totaled $536.8 billion in the third quarter, a 10.7 percent increase from 2Q’18 ($485.1 billion) and a 6.7 percent increase y-o-y ($503.3 billion).

Corporate bond issuance totaled $322.3 billion in 3Q’18, down 18.7 percent from $396.5 billion issued in 2Q’18 and down 23.9 percent from 3Q’17’s issuance of $423.7 billion.

Long-term federal agency debt issuance was $142 billion in the third quarter, down 21.4 percent from $180.6 billion in 2Q’17 and down 24.3 percent from $187.6 billion issued in 3Q’17.

Asset-backed securities issuance totaled $94.5 billion in the third quarter, a decrease of 17.3 percent q-o-q ($114.2 billion) but a 1.6 percent increase y-o-y ($93.0 billion).

Equity underwriting declined by 2.4 percent to $60.1 billion in 3Q’18 from $61.6 billion in 2Q’18 but increased 15.0 percent from $52.3 billion issued in 3Q’17. Of the total, “true” initial public offerings (IPOs) accounted for $12.1 billion, down 16.3 percent from $14.5 billion in 2Q’18 but up 159.6 percent from $4.7 billion in 3Q’17.

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, and derivatives.

Credit

SIFMA Research

  • Kyle Brandon, Managing Director, Director of Research
  • Sharon Sung, Vice President, Research
  • Justyna Podziemska, Assistant Vice President, Research
  • Sotirios Nonas, Intern, Research