Friday, November 30, 2007
According to the latest Research Quarterly issued by SIFMA, issuance of securities in the U.S. capital markets reached $5.06 trillion in the first nine months of 2007, a 7.7 percent increase over the same period last year. Third quarter issuance volume was lower at $1.33 trillion compared to $1.92 billion in the second quarter of 2007 and $1.51 trillion in the third quarter of 2006. Long-term municipal issuance continues at a record pace, boosted by refunding activity. Corporate bond issuance remains ahead of last year and on a record pace despite a sharp drop in high-yield issuance in the third quarter. Agency and mortgage-backed securities (MBS), asset-backed securities (ABS) and collateralized debt obligations (CDOs) fell in the quarter on housing sector weakness and subprime mortgage market deterioration.