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April 11, 2017

Written by Andy Ye, Dealogic Research

US cross-border capital markets issuance at record high

Cross-border* equity and debt** capital markets issuance in the US has soared to a record YTD combined level of $211.2bn this year – as US markets continue to attract foreign companies. While there was an increase in cross-border equity capital markets (ECM) issuance, the surge has primarily been driven by record deal volume for cross-border corporate debt, which has already surpassed $200bn this year – the first time to cross this threshold in a YTD period.

Growth in cross-border ECM

Foreign issuance in the US equity capital markets has grown to $4.0bn from 29 deals so far this year – double the $2.0bn raised in 2016 YTD, when activity and deal volume fell to the lowest level seen since 2009 ($1.4bn). The increase has been driven by greater follow-on transactions, with deal flow doubling year-on-year to 23 issues, and volume up 55% over the period. Cross-border convertible volume has also grown to $876m – more than seven times the amount raised last year, and continues the momentum achieved in 2016, when total convertible volume of $10.1bn set a full-year record.

Foreign companies turn to US debt markets for record amount

Foreign corporate issuance in the US debt capital markets (DCM) has continued its growth trajectory this year, after a blockbuster 2016 which saw a record total of $575.7bn raised from 444 deals. Between 2000 and 2008, foreign companies issued an average of $138.4bn worth of debt annually, but from 2009 until the end of 2016, that figure ballooned to an average of $482.1bn a year. This year so far has already reached a record $207.1bn for a YTD period.

 

* Excludes issuers from the US, Cayman Islands, Bermuda, and Puerto Rico

** Corporate investment grade and high-yield bonds

Data Source: Dealogic, as of April 10, 2017

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