Companies have gained record capital in the global bond and stock markets


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A joint analysis on Wednesday by one of the world’s largest financial market data providers, Refinitiv and the Financial Times London business daily, showed that

In 2021, companies had access to $ 12,100 billion in fresh capital in global bond and equity markets.

There has been no example of such a large amount of market capital being raised in a single calendar year since the measurements began.

The report shows the value of market corporate financing raised since the beginning of the year Exceeded the amount received from stock and bond issues last year by 17 percent, which was also a record, with nearly 25 percent market funding in 2019 in the last full year before the coronavirus epidemic took hold.

According to the Refinitive / FT data analysis, all this indicates what it is like financial conditions are currently easing in much of the global market, particularly in the United States, where companies have raised more than $ 5 trillion out of a total of $ 12,100 billion in market corporate financing this year. According to the report, there have been dozens of corporate bond issues this year, with dollar-denominated values ​​of ten or eleven digits each.

Since the onset of the coronavirus crisis, in addition to government fiscal stimulus, global central banks have huge liquidity-providing programs announced to maintain financial stability. The Bank of England implemented the largest-value quantitative easing program in Europe, accompanied by a sharp cut in interest rates.

The Monetary Council of the British Federal Reserve in March last year, at the beginning of the UK coronavirus epidemic, held two extraordinary meetings from 0.75 per cent to 0.10 per cent reduced the key interest rate to a historic low, and increased the quantitative easing from three to £ 895 billion (HUF 394,000 billion) in three steps. From this, the central bank can buy British government securities or investment-grade pound bonds from companies outside the financial sector. Contrary to expectations, the Monetary Council of the British Central Bank raised its key interest rate by 15 basis points to 0.25 per cent at its last interest rate decision meeting in December. This was the first interest rate hike by the Bank of England, the central bank of Europe’s largest economy outside the EU, in three years. The £ 895 billion in quantitative easing has not changed since the interest rate hike in December.

Cover image: Getty Images


Source: Portfolio.hu – Bank by www.portfolio.hu.

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