A record year for global debt issuance

Global debt underwriting hit records levels in 2019, but equity issuance dipped, according to new data from Refinitiv.

Total equity capital markets activity for 2019 came in at US$677.1 billion, the firm reported. This represented a 3% decline from the previous year, and was the weakest annual total since 2016.

Deal volume also dropped by 8% during the year, to its lowest level in six years.

The financial sector led the way in 2019, accounting for 19% of global equity issuance, followed by the tech sector (15%), energy & power, real estate and healthcare.

The global initial public offering (IPO) market was particularly weak in 2019, with deal value declining by 15% from the previous year.

While equity issuance slumped last year, global debt capital markets hit record heights, rising by 14% in 2019 to US$7.7 trillion.

The tech sector was notably strong, with debt market activity surging by 80%, thanks in part to offerings from Intel, Apple and Corning in the fourth quarter.

High-yield corporate debt totalled US$406.8 billion for the year, up 54% from 2018.

The report also noted that green bond issuance rose by 31% in 2019 to US$173.5 billion, which marked a record for the fledgling segment.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.