Global Debt Capital Markets activity up 16% for all-time record
Overall global debt capital markets activity totaled US$7.0 trillion during full year 2016, a 16% increase compared to a year ago and the strongest annual period for debt issuance since records began in 1980. Over 21,000 debt offerings were brought to market during full year 2016, a 13% increase compared to last year and an all-time annual record.
Global investment grade corporate debt hits record US$3.4 trillion
Global high grade corporate debt offerings totaled a record US$3.4 trillion during full year 2016, an 11% increase compared to a year ago. Issuance of US-dollar offerings hit a record US$1.3 trillion, the eighth consecutive year-to-date increase for US marketplace investment grade debt since the asset class registered a 35% decline in 2008.
Global high yield volume falls 13%
The volume of global high yield corporate debt reached US$305.8 billion during full year 2016, a 13% decrease compared to full year 2015 and the slowest annual period for global high yield issuance since 2011. Fourth quarter issuance totaled US$62.6 billion, a 29% decrease compared to the third quarter of this year, while number of offerings in the fourth quarter decreased 21% compared to the previous quarter.
Government & agency offerings up 48%; Retail & healthcare lead decliners
DCM activity from government & agency issuers totaled US$1.9 trillion during full year 2016, registering an industry-leading increase of 48% compared to year-ago levels. Retail and Healthcare activity saw the steepest year-over-year declines, registering decreases of 14% and 8%, respectively. Government & Agency and Financial offerings accounted for a combined 70% of issuance during full year 2016, up from 68% a year ago.
Emerging markets corporate debt up 34%
Corporate debt from emerging markets issuers totaled US$267.1 billion during full year 2016, up 34% from a year ago. Corporate debt issuers from India, Mexico, Brazil and Russia accounted for 50% of 2016 activity. Issuance from corporations in Brazil more than doubled during 2016, while corporate debt from Russia totaled US$29.9 billion, an increase of 88% compared to a year ago.
JP Morgan tops global debt league table
JP Morgan held the top spot for global debt underwriting during full year 2016 with proceeds of US$415.9 billion and a decrease of 0.7 market share points. Citi moved into second place with a market share decline of 0.3 points, while Bank of America Merrill Lynch maintained third place. HSBC moved to fifth place from eighth a year ago, registering a loss of 0.1 market share points.
Overall debt underwriting fees increase 6%
According to Thomson Reuters/Freeman Consulting, estimated fees from DCM activity totaled US$23.7 billion during full year 2016, an increase of 6% year-on-year.