Global Funding Trends in Capital Markets in 2016

20 Pages Posted: 23 Feb 2017

Date Written: February 23, 2017

Abstract

Bond issuance increased moderately in the developed markets in 2016, partly due to the ongoing fiscal consolidation in the main economies. Placements by companies with better credit quality and by the banking sector were notably buoyant.

Across countries, however, there were significant differences, both in terms of the conditions of supply of bonds by issuers (the cyclical position of each economy, the need for deleveraging by businesses and the public sector, and the regulatory requirements in the financial sector) and in terms of the factors affecting the demand of investors (risk appetite, the search for yield in a context of negative interest rates and the role of central banks in bond purchases).

With regard to the emerging economies, they continued to have access to the markets. However, the volatility observed in foreign exchange markets led to a certain preference for foreign-currency issuance, especially in US dollars.

Suggested Citation

Fuertes, Alberto and Marqués, J. Manuel and Molina, Luis, Global Funding Trends in Capital Markets in 2016 (February 23, 2017). Banco de Espana Article 6/17, Available at SSRN: https://ssrn.com/abstract=2922449

Alberto Fuertes (Contact Author)

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

J. Manuel Marqués

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

Luis Molina

Banco de España ( email )

Alcala 50
Madrid 28014
Spain

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