Tuesday, December 20, 2011

Debt Issuance: Boom to Bust

A short post today.

First of all, may I wish everyone a very Merry Christmas and Happy New Year.

Secondly, a rather interesting chart (click to enlarge) from the Bank of International Settlements (BIS) latest Quarterly Review.

Global Issuance of Debt Securities Has Collapsed

The global boom of floating trillions of new bonds in 2007-08 has - predictably - become an out and out bust this year, as the credit crisis takes a knife to the appetite for more debt. Notice that the amounts in the charts are net, i.e. after accounting for maturities.  

Despite all the talk of massive sovereign bailouts, the figures show that there is very little increase in the total amount of debt outstanding.


  1. Doesn't look right for the UK. Government (net) borowing is the same as the deficit, 140 bn a year.

  2. Please excuse my ignorance Hellasious but how does the US Government finance a 1.5 trillion dollar deficit per year if not through debt issuance?

    Merry Christmas and Happy New Year to you too!

  3. "Notice that the amounts in the charts are net, i.e. after accounting for maturities."

  4. Hi,

    related things explained nicely here: http://ftalphaville.ft.com/blog/2012/01/03/815461/the-collateral-crunch-gets-monetary/

    and here: (also via the awesome alphaville)

  5. Thanks for those links Andrew. Finally got a break to scan, will dig into the second paper in another break.

    So deleveraging (depression) continues unabated? aggravated? in spite of, because of, the Central banks machinations?

  6. Hellasious,

    where are you? Is really nothing worth a comment these days?

  7. No posts for awhile. How will we know if hell is dead?

  8. Shame a sane voice in an insane time has been silent.

  9. Just found your site via The Automatic Earth. I like it. Maybe you might enjoy my technical analysis blog: http://chartistfriendfrompittsburgh.blogspot.com/