This report presents the results of an in-depth study into corporate bond markets globally. The body of the report offers fact-based descriptions of notable developments and issues over the last thirteen years and looks forward to identify potential issues for further research. The main data sources underpinning the findings and conclusions in this report are: Dealogic, Bloomberg, Bank of International Settlements, Asian Bonds Online, SIFMA, IMF and the World Bank. Findings can be summarized under the following four key messages:
(1) Over the last decade or so, corporate bond markets have become bigger, more important for the real economy, and increasingly global in nature.
Corporate bond markets have almost tripled in size since 2000, reaching $49 trillion in 2013. Growth stalled in the wake of this financial crisis as banks began deleveraging their balance sheets. However, the amount outstanding from non-financial firms has continued to expand.
Market depth (amount outstanding as a percentage of GDP) has been increasing amongst developed and emerging markets, averaging 169% for developed markets and 24% for emerging markets in 2013. Deepening markets can suggest increasing reliance on corporate bond markets to meet the financing needs of an economy.
Corporate bond financing has increased as a proportion of total global corporate financing (which includes corporate bond financing, bank financing and equity market financing). In 2004, corporate bond financing made up 24% of total financing, increasing to 25% in 2012. Bank lending still dominates, making up 52% of total financing in 2012.
Read full report at http://www.iosco.org/research/pdf/swp/SW4-Corporate-Bond-Markets-Vol-1-A-global-perspective.pdf
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