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SIFMA today published its Research Quarterly Report for the first quarter of 2016. This report compiles statistics, including issuance data, for a broad range of asset classes across the U.S. capital markets. The full report is available at the following link: http://www.sifma.org/research/item.aspx?id=8589960601
Highlights of the report include:
Total long-term securities issuance was $1.65 trillion in 1Q’16, an 11.6 percent increase from $1.48 trillion issued in 4Q’15 but a 5.4 percent decline year-over-year (y-o-y) from $1.75 trillion in 1Q’15. Issuance rose quarter to quarter (q-o-q) across all asset classes except mortgage-related securities issuance.
Long-term public municipal issuance volume, including private placements, totaled $99.7 billion in the first quarter of 2016, an increase of 17.7 percent from the prior quarter ($84.7 billion) but a decline of 8.0 percent y-o-y ($84.7 billion).
Total gross issuance of Treasury bills and coupons, including cash management bills (CMBs), Floating Rate Notes and Treasury Inflation-Protected Securities (TIPS), was $2.14 trillion in 1Q’16, up 18.0 percent from $1.81 trillion in 4Q’15 and a 24.6 percent increase from 1Q’15 issuance of 1.72 trillion. U.S. Treasury net issuance, including CMBs, decreased to a net $244.0 billion in the first quarter but was a 72.8 percent increase from 1Q’15 net issuance of $141.2 billion.
Federal agency long-term debt issuance was $147.0 billion in the first quarter, a 20.9 percent increase from $125.5 billion in 4Q’15 and 7.1 percent above 137.2 billion issued in 1Q’15.
Issuance of mortgage-related securities, including agency and non-agency passthroughs and collateralized mortgage obligations, totaled $326.3 billion in the first quarter, a 16.1 percent decline from 4Q’15 (379.3 billion) but a 1.6 percent increase y-o-y ($385.4 billion). Asset-backed securities (ABS) issuance totaled $37.8 billion in the first quarter, an increase of 13.9 percent q-o-q but a decline of 36.4 percent y-o-y. The auto sector continued to lead issuance totals with $26.2 billion (69.3 percent of 1Q’16 total issuance), followed by esoteric ABS ($3.7 billion, or 9.7 percent).
Corporate bond issuance totaled $396.0 billion in 1Q’16, up 34.6 percent increase from the $294.1 billion issued in 4Q’15 but 9.7 percent below 1Q’15’s issuance of $438.4 billion.
Equity underwriting increased by 23.2 percent to $48.7 billion in the first quarter from the four-year low of $39.5 billion in 4Q’15 but was 45.6 percent below the 89.5 billion issued in 1Q’15. Equity underwriting volume in 1Q’16 was 26.3 percent below the five-year average of $66.1 billion. The number of equity underwriting deals fell to 160, down 9.6 percent q-o-q and 50 percent y-o-y.
