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Ryan Nauman
VP, Product and Market Strategist
Stephen Berei
VP, Client Services & Implementation
Jeremy Poulin
Senior Client Consultant

Q1 2016 Fixed Income Quarterly

Apr 11, 2016 Ryan Nauman

The torrid pace that was set in 2015 within the investment grade corporate credit capital markets has spilled over into the beginning of 2016.  With assistance from our colleague Drew Jamner, Credit Analyst of Informa Global Markets (IGM), we take a look back at the first quarter of 2016 within the investment grade corporate credit capital market space. 

During this quarter, market volatility rose as a result of questions regarding what central banks from around the world were going to do next, falling oil prices, and talk of a recession.  The investment grade corporate credit capital markets were able to withstand this volatility increase and post another stellar quarter.

New issuances for the first quarter of 2016 came in at $355.379 bn from 181 deals/355 tranches (ex-SSA), which places it as the busiest first quarter in history, surpassing the $351.569 bn done during quarter one of 2015.  Quarter one nearly posted the largest quarter ever by volume, falling just $3.703 bn short of eclipsing the top spot.

Merger & Acquisition (M&A) activity continued to be a big driver in the record setting quarter.  M&A activity accounted for 21.24% or $75.475 bn of the overall volume for the quarter.  The tally of $75.475 is well ahead of 2015’s pace of $62.35 bn during the same time period.  The first quarter brought us 11 deals/39 tranches compared to 19 deals/68 tranches from a year earlier.

Looking to help fund the acquisition of SABMiller, Anheuser-Busch InBev highlighted the quarter with its $46.000 bn, 7-part deal in January, which makes it the second largest M&A and overall trade ever, just behind Verizon’s deal in 2013.  Other notable trades that hit the tape during the first quarter were Apple Inc.’s $12.000 bn 9-part deal and Exxon Mobil’s $12.000 bn 8-part deal.

The first quarter of 2016 has set the tone for 2016.  The market has recently stabilized and interest rates remain low, which could be the fuel that the investment grade corporate credit capital market’s need for another record setting year.

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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