First Quarter Securities Issuance Reached $1.43 Trillion

According to the latest Research Quarterly released by the Securities Industry and Financial Markets Association (SIFMA), securities issuance in the first quarter of 2008 reached $1.43 trillion, an increase from the $1.36 trillion issued in the fourth quarter of 2007 but substantially lower than the $1.81 trillion issued in the first quarter of 2007. The year-over-year issuance decline was the result of the uncertain capital market conditions over the past year. The sharpest declines occurred in the most credit risk sensitive sectors, including nonagency or private-label mortgage-related securities and high-yield bonds. Investment-grade corporate bonds experienced a more modest volume decline, and agency debt and mortgage-backed pass-through securities volumes rose on a year-over-year basis.