Debt levels and flows - Definition and Overview

Flows

2004

Global debt and equity underwriting reached a record $5.69 trillion. Global debt underwriting grew 4.3% year-over-year to $5.19 trillion. Syndicated lending was up 34.3% year-over-year. Global high-yield corporate debt climbed to over $163 billion eclipsing the previous record of $150 billion set in 1998. US asset-backed securities volume increased 41.7% to $857 billion.

Global equity & equity-related issuance totaled $505bn for the year, representing a 29.9% increase over the $389bn raised in 2003. Initial public offerings increased nearly 220%.

2003

Global Debt, Equity and Equity-related issuance reached record-breaking levels with over $5 trillion in proceeds raised, surpassing 2001’s record of $4.4 trillion. The $5 trillion of borrowings represented 14% of the GDP flow during the year (4.938/36.3) (see world economy). 93% of the issuance was debt, 7% was equity. Note that these numbers don't include all mortgage borrowing, which was $3.8 trillion in the United States during 2003. $900 billion of it is in mortgage-backed securities, at least $546 billion in US Federal Credit Agency.

Flows

Debt and equity issuance reported by Thomson Financial ([1] (http://www.thomson.com/financial/investbank/fi_investbank_league_tablearchive_debt.jsp)) ($ billions and number of isses).

Global Debt, Equity & Equity-related

• 2004: 5,693 (20,066) (Q4 2004 report)
• 2003: 5,326 (19,706) (Q4 2003 report)
• 2002: 4,257 (?) (Q4 2003 report)

Global Disclosed Fees

• 2004: 15.401 (6,890) (Q4 2004 report)
• 2003: 14.461 (8,023) (Q4 2003 report)
• 2002: 14.762 (6,696) (Q4 2003 report)

Global Equity and Equity-related

• 2004: 505 (3,628) (Q4 2004 report)
• 2003: 388 (2,418) (Q4 2003 report)
• 2002: 319 (?) (Q4 2003 report)

Global Debt

• 2004: 5,187 (16,439) (Q4 2004 report)
• 2003: 4,938 (17,287) (Q4 2003 report)
• 2002: 3,938 (?) (Q4 2003 report)

Global High Yield Corporate Debt

• 2004: 163 (606) (Q4 2004 report)
• 2003: 146 (524) (Q4 2003 report)
• 2002: 63 (?) (Q4 2003 report)

Europe

All Euromarket Issues

• 2003: 1,397 (3,568) (Q4 2003 report)
• 2002: 877 (2715) (Q4 2002 report)

European Leveraged Loans

• 2003: 107 (222) (Q4 2003 report)
• 2002: ? (?) (Q4 2002 report)

United States

US Investment Grade

• 2003: 659 (1,868) (Q4 2003 report)
• 2002: 549 (?) (Q4 2003 report)

All US Federal Credit Agency Debt. FHLB dominated the agency market in 2003, raising $545.5 billion in proceeds, a 35% increase in volume from 2002.

• 2003: 1,191 (13,152) (Q4 2003 report)
• 2003: 923 (?) (Q4 2003 report)

US Mortgage-backed Securities

• 2003: 900 (1,203) (Q4 2003 report)
• 2002: 805 (?) (Q4 2003 report)

US Asset-backed Securities

• 2003: 581 (1,175) (Q4 2003 report)
• 2002: 456 (?) (Q4 2003 report)

US Syndicated Loans

• 2003: 980 (2,962) (Q4 2003 report)
• 2002: 1,051 (?) (Q4 2003 report)

US Leveraged Loans

• 2003: 368 (1,549) (Q4 2003 report)
• 2002: 344 (?) (Q4 2003 report)

Levels

Numbers are end-of-year levels.

Euro area

Credit market debt

• 2003: ?

Households

• 2003: 80.9% of households’ gross disposable income

Non-financial corporations

• 2003: 78.9% of GDP

Government

• 2003: 70.7% of GDP

Japan

Credit market debt

• 2003: ?

Households

• 2003: 110.5% of households’ gross disposable income

Non-financial corporations

• 2003: 110.5% of GDP

Government

• 2003: 141.3% of GDP

United States

Dollar amounts are debt owed by each sector (amounts borrowed by each sector) Credit market debt

• 2003: $34.0 trillion (309% of GDP) (34011.5/11004.1)

Household sector

• 2003: $9.2 trillion (90% of GDP) (67.5% of "households’ gross disposable income" from ECB)

Financial sectors

• 2003: $11.6 trillion (100% of GDP)

Nonfinancial corporate business

• 2003: $4.973 trillion (67.5% of GDP "Non-financial corporations" from ECB)

Nonfarm noncorporate business

• 2003: $2.241 trillion

Farm business

• 2003: $208 billion

Government

• 2003: $5.594 (4.034+1.560) (47.7% of GDP "Government" from ECB)

Federal government

• 2003: $4.034 trillion

State and local governments

• 2003: $1.560 trillion

See also

• Bond
• Credit
• Credit market
• Debt
• Debt market
• Equity levels and flows
• Fixed income
• Fixed income market
• Loan
• Securitization
• Structured finance
• World economy

Lists

• Thomson Financial league tables

External links

ECB

• ECB: Statistics (http://www.ecb.int/stats/html/index.en.html)
  • ECB: Statistics pocket book (http://www.ecb.int/pub/spb/html/index.en.html)

Untied States

• Outstanding Public and Private Bond Market Debt (http://www.bondmarkets.com/story.asp?id=323)

Federal Reserve

• FRB: Z.1 Release-- Flow of Funds Accounts of the United States, Release Dates (http://www.federalreserve.gov/releases/Z1/)
  • FRB: Z.1 Release--L.1--Credit Market Debt Outstanding--December 9, 2004 (http://www.federalreserve.gov/releases/Z1/current/accessible/l1.htm)
  • FRB: Z.1 Release--F.6--Distribution of Gross Domestic Product--December 9, 2004 (http://www.federalreserve.gov/releases/Z1/current/accessible/f6.htm)

Thomson Financial

• Thomson - Financial - League Tables (http://www.thomson.com/financial/investbank/fi_investbank_league_tablearchive_debt.jsp)