NEW YORK (Standard & Poor‘s) Sept. 12, 2012--Despite slower issuance activity in August, global corporate bond new issuance reached its highest January-to-August total--$1.9 trillion--since 2009, said an article published today titled “Global Corporate New Issuance Reached An Eight-Month Total Of $1.9 Trillion In August.” In comparison, new issuance totaled $1.8 trillion and $1.6 trillion during the same period in 2011 and 2010, respectively. In 2009, corporate bond issuance reached a record $2.3 trillion in the first eight months, buoyed by government programs that fueled borrowing.
“In August 2012, $181 billion came to market globally, and it was the slowest month so far this year, compared with the monthly average of $248 billion in the first seven months,” said Diane Vazza, head of Standard & Poor’s Global Fixed Income Research. Investment-grade new issuance (those rated ‘BBB-’ and higher) comprised 59.1% of the $1.9 trillion total and speculative-grade new issuance (those rated ‘BB+’ and lower) represented 12.6%. The remaining 28.3% comprised new bonds that Standard & Poor’s Ratings Services doesn’t rate. In contrast, 56.9% of the total $2.4 trillion that came to market in full-year 2011 was investment-grade issues, 12.3% was speculative-grade issues, and unrated issues comprised 30.8%. By region, Europe accounted for 35.8% of the $1.9 trillion total, followed by the U.S. (33%), the emerging markets (19.3%), and the other developed region (11.9%).