Debt Capital Markets Update Q3 2019
We are pleased to share LSEG’s Quarterly Debt Capital Markets (DCM) update for Q3 2019.
The update provides a review of global DCM activity and key highlights from London Stock Exchange's Markets.
- Global macro dynamics follows trends from Q1 and Q2. Despite strong issuance in September, overall volumes remain down compared to Q3 2018. Circa $14 trillion of outstanding debt is now negatively yielding.
- London Stock Exchange's Sustainable Bond Market (SBM) was launched on 11 October 2019, following a market consultation on proposed developments. In 2015, we became the first exchange to set up dedicated Green Bond Segments. Now our expanded SBM offers a wide range of opportunities for green, sustainability and social bonds, in addition to other bonds from green economy classified issuers, as the need to manage climate risks and create impact becomes ever more important. SBM also introduces a commitment for issuers to ensure ongoing eligibility of the bonds, including mandatory annual reporting of use-of-proceeds where relevant.
- Key transactions: In Q3 2019, London Stock Exchange saw strong deals from corporate, FIG, sovereign and supranational issuers – raising a total of $99bn for our global issuers through 223 bond issuances. London-listed issuers also won industry awards for innovative Covered Bond transactions.
- Sonia and SOFR issuances show continued growth. Q3 saw the first three SOFR linked transactions from European Bank for Reconstruction and Development, Inter-American Development Bank and New Day. September was also the strongest month for SONIA-linked issuances by number of transactions (12), raising £3.36bn for UK and non-UK issuers. Lloyds Bank switched the reference rate for a £1bn covered bond from LIBOR to SONIA during the quarter, a significant milestone.
- International Securities Market (ISM) continues to grow, with 110 admitted bonds, raising £28.6bn for 45 issuers from across the world. As noted in our overview of the Prospectus Directive III, ISM admissions can ensure consistency of Risk Factors for Eurobond programmes with issuers global programmes.
- Events Calendar and Thought Leadership: A list of key conferences and LSEG events globally in Q4 and Q1 2020. We look forward to welcoming you for our flagship 2nd LSEG UK Debt Capital Markets Conference on Friday, 6 March 2020.
To find out more about London Stock Exchange's Debt Capital Markets you can contact the Fixed Income team at email@example.com or 0207 797 3921
Head of Multi-Asset Primary Markets and Investment Funds
London Stock Exchange Group