Global bond issuance declined in the second quarter, according to a report released on Friday by Moody’s Investors Service.
Global private debt issuance by both financial institutions and non-financial corporations dipped slightly in the second quarter, the report says, “as lower volumes in China pulled emerging market issuance lower and uncertainty around the U.K.’s vote on its EU membership weighed on June volumes.”
Global bond issuance came in at US$1 trillion in the second quarter, the report adds, which is down by about 1% from the previous quarter. New bond supply in advanced economies increased by 5% to US$728 billion in Q2, but emerging market issuance fell by 13% to US$273 billion.
Issuance by non-financial companies picked up globally, the report says, except in China. And this rise in non-financial issuance “partly offset the lower activity of financial institutions, especially in North America.”
In North America, companies in healthcare, tech, utilities and energy sectors were especially active on the primary markets, the report says. European issuance was led by telecommunications, oil and gas, and car and truck manufacturers, it reports.