Fund raising in the international capital markets in 2021

Laura Álvarez-Román, Alberto Fuertes, Luis Molina Sánchez and Emilio Muñoz de la Peña
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Alberto Fuertes: Banco de España
Emilio Muñoz de la Peña: Banco de España

No 2211, Occasional Papers from Banco de España

Abstract: This paper analyses the main trends in the private sector’s issuance activity in international capital markets during 2021, a year in which, despite positive developments that resulted in volumes above pre-2020 levels, the record 2020 figures were not achieved. Thus, the total issuance volume of debt securities declined due to lower issuance in the non-financial corporate sector, which may have been driven by the large amount of funds raised during 2020, lower funding needs for precautionary reasons in view of the improved health situation and higher funding costs. However, bond issuance by the banking sector and other financial institutions increased; this growth was concentrated in the United States, on expectations of monetary policy tightening in that area and regulatory factors. High-yield bond issuance also increased, benefiting from lower risk aversion. By region, the sharpest declines were in the United States, followed by the United Kingdom and the euro area. Conversely, issuance in the equity markets was strong and surpassed the 2020 figures.

Keywords: bond issuance; international capital markets; corporate finance; debt securities; equities (search for similar items in EconPapers)
JEL-codes: G15 G20 G32 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2022-11
New Economics Papers: this item is included in nep-ifn and nep-mon
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https://www.bde.es/f/webbde/SES/Secciones/Publicac ... 22/Files/do2211e.pdf First version, November 2022 (application/pdf)
https://www.bde.es/f/webbde/SES/Secciones/Publicac ... s/22/Fich/do2211.pdf Spanish version (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:bde:opaper:2211e

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