NEW YORK - Low interest rates and a recovering economy fueled a record $4.938-trillion in global private-sector bond sales for 2003. The figure, released Wednesday by Thomson Financial Securities Data, includes issuance of corporate debt, federal agency debt, taxable municipal bonds, debt backed by mortgages and debt backed by assets such as credit card receivables and home equity loans.
By comparison, issuance in 2002 totaled $3.938-trillion, according to Thomson. In 1990, global private sector debt issuance stood at just over $500-billion, or about one-tenth of this year's level. Nearly 60 percent of the total debt sold in 2003 was issued by companies in the Americas.
U.S. investment-grade corporate bond issuance, at $658.66-billion, showed a significant increase from last year's $548.98-billion. That total includes U.S. and foreign issuers completing deals in the U.S. market and excludes issues with maturities under 18 months.
Citigroup retained its crown as the top global bond underwriter in 2003 with a 10.2 percent market share and $510.81-billion in proceeds. Morgan Stanley moved up to second from sixth place in 2002 with a 7.2 percent market share and $355.40-billion in proceeds underwritten. Merrill Lynch fell to third from second with a 7.1 percent market share and $349.25-billion in proceeds. A total of 17.29-billion bonds were issued in 2003.
Citigroup was also the top U.S. debt underwriter in 2003, with a market share of 11.7 percent and $3.140-billion in proceeds. Issuance totaled $3.209-trillion.
