U.S. bond issuance reached $4.19 trillion for the first three quarters of 2006, barely outpacing the $4.18 trillion issued during the same period last year, according to a report from the Securities Industry and Financial Markets Association. Corporate bond issuance reached $748.8 billion through the three quarters, a roughly 30% increase from the same period last year. Higher credit quality and agency mortgage-related issuances also increased for the nine months, while municipal securities, net issuance of U.S. Treasuries and asset-backed volumes all declined.
"Overall bond issuance through the third quarter is basically flat, compared to a year ago," said Michael Decker, head of research and policy analysis at SIFMA. "With a mixed economic outlook, rates remaining at historically low levels and Fed policy probably on hold into next year, overall 2006 bond issuance should equal 2005."