US Research Quarterly, Fourth Quarter 2016

Long-term securities issuance totaled $1.56 trillion in 4Q’16, a 21.1 percent decrease from $2.0 trillion in 3Q’16 but a 6.5 percent increase year-over-year (y-o-y) from $1.50 trillion. Issuance decreased quarter-over-quarter (q-o-q) across all asset classes but mortgage-related and asset-backed securities; y-o-y, growth was positive in municipal, mortgage-related, asset-backed and equity classes. For the full year 2016, capital markets long-term issuance totaled $7.19 trillion, up 6.5 percent from $6.75 trillion in 2015.

Long-term public municipal issuance volume including private placements for 4Q’16 was $104.9 billion, down 9.1 percent from $115.4 billion in 3Q’16. Full year 2016 issuance was $445.8 billion, an increase of 10.6 percent from $403.1 billion in 2015.

Total gross issuance of Treasury bills and coupons, including cash management bills, Floating Rate Notes and Treasury Inflation-Protected Securities, was $2.10 trillion in 4Q’16, down 1.8 percent from $2.14 trillion in 3Q’16 but a 15.9 percent increase from $1.81 trillion in 4Q’15. For the full year 2016, gross issuance of Treasury securities totaled $8.30 trillion, up 18.8 percent from $7.00 trillion in 2015.

Long-term federal agency debt issuance was $101.4 billion in the fourth quarter, a 55.8 percent decrease from $229.3 billion in 3Q’16 and a 16.5 percent decrease from $121.5 billion issued in 4Q’15. For the full year 2016, issuance was $673.0 billion, up 31.0 percent from $513.5 billion in 2015.

Issuance of mortgage-related securities, including agency and non-agency passthroughs and collateralized mortgage obligations, totaled $557.3 billion in the fourth quarter, a 1.5 percent increase from 3Q’16 ($549.3 billion) and a 45.1 percent increase y-o-y ($361.9 bil-lion). For the full year 2016, mortgage-related securities issuance was $1.9 trillion, an in-crease of 15.9 percent from 2015.

Asset-backed securities issuance totaled $76.4 billion in the fourth quarter, an increase of 1.2 percent q-o-q and 36.3 percent y-o-y. For the full year, issuance was $275.4 billion, a decline of 11.7 percent from the prior year.

Corporate bond issuance totaled $257.5 billion in 4Q’16, down 39.1 percent from $422.7 billion issued in 3Q’16 and 12.7 percent from 4Q’15’s issuance of $294.9 billion. For the full year 2016, corporate bond issuance increased to $1.52 trillion, up 1.8 percent from $1.49 billion in 2015.

Equity underwriting decreased by 15.2 percent to $46.4 billion in the fourth quarter from $54.7 billion in 3Q’16 but increased by 16.5 percent from $39.8 billion issued in 4Q’15. For the full year 2016, equity underwriting totaled $197.0 billion, 23.3 percent below the $256.8 billion in 2015.

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, Research: Sharon Sung
  • Senior Associate, Research: Justyna Podziemska

SIFMA Business Policies and Practices

  • VP: Joseph Cox
  • VP: Craig Griffith