If the Fed chooses to hike US rates today it will close the chapter on zero interest-rate policy (ZIRP). The Fed’s zero interest rate policy has facilated access to cheap credit. Corporations have taken advantage of low rates to fund share buybacks and releverage balance sheets. This behaviour is reflected in the growth in the global bond market. However if the ECB keeps its Quantiative Easing program in place then Europe will remain a venue for companies to issue cheap debt.
CMD’s MTN and Bond data in the corporate sector shows the level of issuance has almost doubled between 2008 to 2014. Over the last 10 years corporate issuance has grown at an average of 20% per year.
Subscribers with access to CMD’s tool set can generate this information through the following process.
Click ‘Data Sheet’ in the left hand side menu
Select the relevant filters;
Report: By industry sector category
Report currency: USD
Report type: Issuance
Start Date: 1 July 2003
End Date: 30 June 2015
Security types: MTN; Bond
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