CORPORATE DEBT MARKET


CORPORATE DEBT OUTSTANDING AND ISSUANCE

Corporate Debt Outstanding:  $9.2 trillion (Q4 2018) - up 2.3% from year-end 2017. Growth in debt outstanding slowed during 2018.

Corporate Debt Outstanding: $9.2 trillion (Q4 2018) - up 2.3% from year-end 2017. Growth in debt outstanding slowed during 2018.

Corporate Debt Issuance:  $1.301 trillion issued in LTM - down 18% and now below 2012 levels, but remained historically sizeable.

Corporate Debt Issuance: $1.301 trillion issued in LTM - down 18% and now below 2012 levels, but remained historically sizeable.


CORPORATE BOND SPREADS

Spreads relatively stable and below average since 2000.

Spreads relatively stable and below average since 2000.

Spreads have been rising, but remain below average since 2000.

Spreads have been rising, but remain below average since 2000.


CORPORATE BOND YIELD CURVE

YoY Change in Corporate Yield Curve:  Similar to U.S. Treasury yield curve, the corporate yield curve has dropped and flattened from one year ago. Short end is flat, but the mid-range and long-term (3-year through 10-year) are down.

YoY Change in Corporate Yield Curve: Similar to U.S. Treasury yield curve, the corporate yield curve has dropped and flattened from one year ago. Short end is flat, but the mid-range and long-term (3-year through 10-year) are down.

Risk Premiums:  The risk premium on a 10-year corporate bond has increased ~10 bps from one year ago, but remains ~40 bps less than the 162 bps average since 2000.

Risk Premiums: The risk premium on a 10-year corporate bond has increased ~10 bps from one year ago, but remains ~40 bps less than the 162 bps average since 2000.


YIELD CURVE MATURITY SEGMENT TRENDS

1-year Corporate Bond Yields

1-year Corporate Bond Yields

2-year Corporate Bond Yields

2-year Corporate Bond Yields

3-year Corporate Bond Yields

3-year Corporate Bond Yields

5-year Corporate Bond Yields

5-year Corporate Bond Yields

7-year Corporate Bond Yields

7-year Corporate Bond Yields

10-year Corporate Bond Yields

10-year Corporate Bond Yields