The fall in global bond supply has accelerated into the second half of the year. Rising interest rates combined with concerns over economic growth are heaping pressure on primary markets, hiking funding costs and resigning many borrowers to the sidelines. Issuance volumes have slumped around 28% year-on-year (YoY) to USD 5.2trn in the year to date (YTD). The drop has been even starker quarter-on-quarter (QoQ). During 3Q22, issuance fell short of USD 1.3trn, down a hefty 37% on 3Q21.
No region has been immune to the tail-off in new-issue supply, but the pace of decline has been slowest in Asia-Pacific (APAC), where more than USD 1.5trn of bonds have been issued in 2022 YTD. This represents a fall of around 39% YoY. Europe, the Middle East and Africa (EMEA) has seen the sharpest decrease, with supply plunging more than 49% YoY to USD 1.6trn. There have been a little over USD 2trn of new deals issued in the Americas this year, down almost 46% YoY.
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