Bond issuance massive surges to meet QE demand

The pace of global bond issuance has risen significantly this year according to JP Morgan’s September 30 Flows & Liquidity report. According to the report, net bond issuance stands at $2.5 trillion so far this year, up by almost $400 billion compared to last year’s total. This total excludes emerging market local debt but includes spread products – bonds issued outside central government. JP Morgan is forecasting a 55% rise in spread products supply for 2016 compared to 2015.

Bond issues surge to meet QE demand

The big increase in bond issuance has coincided with more QE from central banks. So far this year G4 central banks have introduced a further $1.9 trillion of QE. More debt is helping central banks in...