Global private debt issuance reached a record high in 2016 thanks to stronger emerging-market activity, according to a new report from Moody’s Investors Service Inc.
The credit-rating agency reports that US$3.9 trillion worth of global private debt was issued last year, even as deal activity tailed off in the fourth quarter.
“Despite a weaker final quarter, global private market issuance reached a record high in 2016,” says Rahul Ghosh, vice president and senior credit officer at Moody’s, in a statement. “A strong third quarter, particularly in emerging markets, contributed to the record total over the year.”
Total private sector issuance in advanced economies rose by 3% year-over-year to US$2.65 trillion in 2016, Moody’s reports. At the same time, emerging-market issuance rose by 22% to US$1.29 trillion.
Moody’s also notes that global high-yield issuance increased by 75% in the fourth quarter compared with the corresponding quarter in 2015. North American high-yield issuance was particularly strong during the year, the firm reports.