The US corporate bond market grew 9 percent in 2013 to A new report shows industrial volume surged by 10 percent to
Financial issuer volume rose 7 percent to
Due to exceptionally strong refinancing activity, the par- weighted average coupon of outstanding bonds associated with nonfinancial companies fell to 5.58 percent at year-end from 5.89 percent at the end of 2012, while the average financial coupon slipped below 5 percent to 4.93 percent versus 5.27 percent a year earlier. The automotive sector enjoyed the biggest decline in net borrowing costs in 2013 (in excess of 1 percent).
Issuance in 2013 surpassed scheduled bond maturities by a margin of three to one. Maturities of ten years or longer represented 47 percent of issuance versus 49 percent in 2012. For the market as a whole, 6 percent of outstanding volume at year-end 2013 is scheduled to mature in 2014 (
The share of U.S. corporate bonds affected by downgrades totaled 4.9 percent in 2013, modestly higher than the year's upgrade rate of 4.6 percent. Both measures were in line with 2012 results of 6.2 percent and 4.4 percent, respectively. Similar trends persisted year over year, including further erosion in the investment-grade rating mix.
The 'BBB' portion of the market reached a new high of
For a full view of U.S. corporate bond market rating and issuance trends please see "U.S. Corporate
Additional information is available on fitchratings.com.
The above article originally appeared as a post on the Fitch Wire credit market commentary page. The original article, which may include hyperlinks to companies and current ratings, can be accessed at fitchratings.com. All opinions expressed are those of Fitch Ratings.
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The US corporate bond market grew 9 percent in 2013 to
A new report shows industrial volume surged by 10 percent to