SIFMA Fact Book 2017

The securities industry raised $2.2 trillion of capital for businesses in 2016 through debt and equity issuance activity in the United States, a 4.4 percent decline from the previous year.

Equity issuance, including common and preferred shares, totaled $197.5 billion in 2016, a decline of 23.1 percent. Initial public offering (IPO) volume, excluding closed-end funds, was $17.8 billion, down 45.1 percent from 32.5 billion in 2015, while closed-end fund IPOs fell by 54.1 percent to $3.0 billion. Follow-on, or secondary, issuance totaled $153.8 billion, down 17.0 percent from 2015.

Issuance of corporate debt, asset-backed securities and non-agency mortgage-backed securities totaled $2.0 trillion in 2016, down 2.1 percent from 2015. Non-convertible corporate debt issuance rose 2.0 percent to $1.5 trillion in 2016 while convertible corporate debt declined 9.0 percent to $18.8 billion. Non-agency mortgage-backed securities issuance fell to $164.6 billion, down 17.4 percent from 2015, while asset-backed securities issuance volume fell 11.0 percent to $283.9 billion.

U.S. long-term municipal bond issuance totaled $445.8 billion in 2016, a 10.1 percent increase from $405.0 billion in 2015. Of the total, 55.7 percent was issued in form of revenue bonds, 39.4 percent in general obligation bonds and the remainder in private placements.

U.S. equity issuance decreased by 23.1 percent to $197.5 billion in 2016. True IPOs, which exclude closed-end funds, decreased by 45.1 percent to $17.8 billion.

U.S. merger and acquisition announced deals totaled $1.6 trillion in 2016, a 20.3 percent decrease from the $1.9 trillion in 2015, while the value of completed M&A deals fell by 11.4 percent to $1.5 trillion.

U.S. stock markets had a positive year in 2016. The Dow Jones Industrial Average rose by 13.4 percent, ending at 19,762, the Standard & Poor’s 500 Index was up 9.5 percent to close 2016 at 2,238.83 and the NASDAQ Composite Index rose 7.5 percent to 5,383.12.

NYSE-listed stocks average daily dollar volume decreased by 1.7 percent to $129.0 billion in 2016 from $131.2 billion in 2015. NASDAQ-listed stocks average daily dollar volume was $71.5 billion in 2016, 5.2 percent lower than $75.4 billion in 2015.

 

About the Report

The SIFMA Fact Book is an annual reference containing comprehensive data on the securities industry, capital markets, market activity, investor participation, global markets, savings and investment, and much more. The Fact Book – used frequently by industry professionals, regulators, academics, and journalists – amasses data from dozens of sources into a single, easily accessible reference source for researchers and others who track key industry statistics.

Credits

SIFMA Research

Kyle Brandon, Managing Director, Director of Research
Sharon Sung, Assistant Vice President, Research
Justyna Podziemska, Senior Associate, Research