Anyone For Debt? - Asset backed new issuance drops 54.1% in Q2 2009
13th July 2009
(LONDON, UK) Xtrakter, the market utility, released the following figures today: Fixed income new issuance was valued at USD 1 trillion for Q2 2009 representing a 15% (USD 180 billion) drop on Q2 2008 figures. During the same period asset backed new issuance accounted for USD 100.6 billion of all issues down by 54.1% (USD 118.7 billion) and the overall size of the international capital market rose by 10.3% (USD 1.3 trillion) to a total value of USD 14.1 trillion.
"It is not unexpected that the appetite for asset backed new issues has declined, this does not rule out all, as the amount of Pfandbriefe new issues this year has virtually doubled from USD 27 billion in Q1 to USD 51 billion in Q2 highlighting a continuing demand for regulated covered issues in the market" commented Kevin Milne, Chief Executive
Once again the Euro was the preferred currency of issue capturing 51.6% (USD 525.8 billion), the US Dollar was selected for 36% (USD 367.4 billion) and Pounds Sterling was chosen for 6.6% (USD 67.7 billion) of the total fixed income new issuance in Q2 2009.
During the same period the international capital market increased in total value to USD 14.1 trillion in terms of outstanding debt (excluding private and domestic issuance). A further analysis of the market size by currency revealed that the Euro represented 48.9% (USD 6.8 trillion), the US Dollar represented 32.1% (USD 4.5 trillion) and Pounds Sterling represented 12.17% (USD 1.7 trillion) of the total debt outstanding at that time.
The top issuers in Q2 2009 were:
Freddie Mac (USD 42.8 billion), Société de Financement de l'Economie Française (USD 33.3 billion), European Investment Bank (USD 26.1 billion), Lloyds TSB bank (USD 24.7 billion), Fannie Mae (USD 23.9 billion) and KFW (USD 22.9 billion).
The following corporate issues were also noted:
Barclays Bank (USD 17.8 billion), Arcelormittal (USD 8 billion), Volkswagen (USD 6.7 billion), Shell International Finance (USD 6.7 billion), Rio Tinto Finance (USD 5 billion), Anheuser-Busch Inbev (USD 4.6 billion), GMAC LLC (USD 4.5 billion), Merck & Co (USD 4.2 billion), Vodafone Group (USD 3.8 billion), Microsoft Corporation (USD 3.7 billion) & Deutsche Telekom (USD 3.7 billion).
In Q2 2008 Pfandbriefe new issues accounted for USD 70.8 billion of total new issuance compared with USD 51.6 billion in Q2 2009, a 27.2% (USD 19.3 billion) decline when comparing year on year figures. In 2009 Pfandbriefe new issues were valued at USD 27 billion in Q1 highlighting that a 91% (USD 24.6 billion) increase occurred between Q1 and Q2.
When comparing currency preferences for new issuance between Q2 08 and Q2 09 the following observations were noted:
CNY - Chinese, Yuan Renminbi declined by 100% (USD 241 million) to USD 0 million
COP - Colombia, Pesos increased by 560% (USD 36 million) to USD 42 million
GBP - United Kingdom, Pound declined by 45.2% (USD 56 billion) to USD 67.7 billion
NOK - Norway, Krone increased by 37.7% (USD 528 million) to USD 1.9 billion
JPY - Japanese, Yen declined by 64.7% (USD 17 billion) to USD 9.2 billion
GHS - Ghana, Cedis rose by 42% (USD 9 million) to USD 30 millionelit.
The data for this market analysis is provided by TRAX, Xtrakter's trade matching and regulatory reporting system for the OTC market. For more information, charts and a full breakdown of the top issuers click here: www.xtrakter.com/charts.aspx
