FIXED-INCOME AND ASSET-BACKED ISSUANCE DROPS
Posted July 14, 2009
LONDON – New issuance in fixed-income during the second quarter of 2009 has dropped 15 percent compared to the same quarter in 2008, according to figures from Xtrakter, the Euroclear-owned provider of capital markets data, operational risk management and reporting services.
Issuance for the quarter was valued at $1 trillion, a $180 billion drop from last year’s second quarter. Also in the second quarter of this year, asset-backed new issuance was down by 54.1 percent to $100.6 billion, while the overall size of the international capital market rose 10.3 percent to a total of $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 $27 billion in the first quarter to $51 billion in the second quarter, highlighting a continuing demand for regulated covered issues in the market,” says Kevin Milne, Chief Executive of Xtrakter.
The euro remained the preferred currency for
fixed-income new issuance, capturing 51.6 percent, with the US dollar
used for 36 percent and