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Ryan Nauman
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Q3 2015 Fixed Income Quarterly

Oct 7, 2015 Ryan Nauman

Records are meant to be broken, right? The third quarter of 2015 brought us more of the same in the fixed income capital market space as the records continue to fall.  Once again Drew Jamner, Credit Analyst of Informa Global Markets (IGM), has provided us with expertise and some great insight on what transpired within the fixed income capital markets during the third quarter of 2015.

The blistering pace of new issuances in the investment grade corporate credit market space set during the first half of 2015 continued during quarter three.  Quarter one ($351.569bn ex. SSA) and quarter two ($359.081bn ex. SSA) are the two largest quarters of new issues by volume of all time (in terms of quarter one and quarter two).  Even though quarter three failed to break through the $300bn barrier, it set a record of its own with new issuances of investment grade corporate credit debt, coming in at $281.197bn (ex SSA), which is the largest quarter three by volume  ever and the 7th largest quarter on record.

Mergers and acquisitions made up about 25% of corporate issuance this quarter, which is the greatest percentage of issuances this year, with healthcare being the leading sector.  Overall there were 173 deals (ex. SSA) during the quarter with the average deal size at $1.625bn (ex. SSA).  Charter’s 6-part, $15.500bn deal was the largest for the quarter, while Hewlett Packard Enterprise closed the quarter with a jumbo $14.6bn, 9-part deal.

The first three quarters of 2015 put us just short of eclipsing the trillion dollar mark for new issues and on pace to break the all-time record ($1,090bn Ex. SSA) for new investment grade corporate credit issuances for a year.  This will mark the third consecutive year new issuances by volume break the trillion dollar mark.  With signs pointing to a strong finish to 2015 in the fixed income capital market space, expect more records to fall.

To learn more about Drew Jamner, Credit Analyst (Drew.Jamner@informagm.com) and the services provided by Informa Global Markets visit http://www.informagm.com.

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