Various bonds rating from single C to AAA
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Global debt issuance reached a record high in the first quarter, according to new data from LSEG Data & Analytics.

Total offering activity rose by 6% year-over-year to $3.2 trillion (all figures in U.S. dollars), which is the strongest first quarter on record and the second highest quarterly total ever. That’s despite a 2% decline in the number of deals. 

While both investment-grade and high-yield corporate debt issuance slipped a bit in the first quarter, down by 3% and 2% respectively — issuance of agency and sovereign debt surged by 21% year-over-year to $1.12 trillion. 

Global issuance of mortgage-backed securities was also up 48%, and activity in asset-backed securities was up 7% too.

Offerings of investment-grade corporate debt were down 3% year-over-year, but they were up 49% quarter-over-quarter. High-yield issuance was up 27% from the fourth quarter, the report showed. 

The financial sector was the primary source of new issue activity, with $1.26 trillion worth of new issuance in the first quarter. Outside of financials, the strongest gains in the first quarter were in the tech, consumer staples and materials sectors.

LSEG also reported that green bond issuance declined in the first quarter, down 13% year-over-year to $126 billion, a three-year low. 

JP Morgan led the global debt underwriting league tables in the first quarter. BofA Securities Inc. climbed up one spot to second place, and Citi slipped to third spot, the report noted. 

BMO Capital Markets was the highest-ranked Canadian underwriter in the global league tables, taking 13th place, up from 17th spot a year ago. It’s ranked first overall in global mortgage-backed securities, bumping JP Morgan down to second place. 

RBC Capital Markets dropped from 10th place to 16th in the global rankings. TD Securities Inc. slipped to 17th from 14th place, the data showed.