LONDON, July 6, 2011 /PRNewswire/ --
TheCityUK (http://www.thecityuk.com/), the independent body promoting UK financial services on a world scale, has launched the Bond Markets 2011 report, revealing the global value outstanding of bonds.
Outstanding bonds totalled a record $95 trillion at the end of 2010, up 5% on the previous year. Domestic bonds accounted for 70% of the total and international bonds for the remainder.
As a proportion of global GDP, the bond market increased to 130% in 2010 from 119% in 2008 and 80% a decade earlier. The considerable growth means that at the end of 2010 it was much larger than the global equity market which had a market capitalisation of around $55 trillion. Growth of the market since the start of the economic slowdown was largely a result of an increase in issuance by governments, with government bonds accounting for 43% of the value outstanding at the end of 2010, up from 39% a year earlier.
The corporate bond market remained strong in 2010 following on from the rally in 2009. Book-runners' deal volume from global debt capital markets totalled $6.05 trillion in 2010, down 2% from the previous year but nearly 40% up on the volume two years earlier.
Marko Maslakovic, Senior Manager, Economic Research at TheCityUK, said: "The slow pace of book-runners deal volume in Europe during 2010, partly a result of the government finance crisis in some countries, was largely offset by an increase in activity in the US. Europe's corporate bond markets remain less developed than in the US, but are likely to expand as companies diversify sources of funding."
Download the full report at http://www.thecityuk.com/assets/Uploads/BondMarkets2011.pdf
TheCityUK is the independent membership body promoting the UK's financial service industry and related professional services industry. It was created with the support and initial financial backing of the City of London Corporation.
TheCityUK is the cross-sector voice for the UK financial services community working to build a deeper pool of support across the UK, promoting UK financial services overseas and contributing to the regulatory and trade policy debate.
The purpose of the organisation is to partner prosperity - supporting the competitiveness of UK financial services and protecting their considerable economic contribution. TheCityUK co-ordinates and facilitates the contribution of its members to drive and deliver its priorities.
Its UK-wide financial services membership covers all sectors in the financial services industry and the related professional services industry. It is independent and politically neutral.
For more information on TheCityUK and UK financial services, visit http://www.thecityuk.com/