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published: 5.15.02
New issue activity in the U.S. bond market totaled $1.3 trillion in the first quarter of 2002, an increase of 31.2 percent from the $1.0 trillion issued during the same period last year. The low-interest-rate environment continues to attract issuers, while the relatively safer and more stable fixed-income markets appeal to investors looking to safeguard against stock market volatility. Most of the issuance increase can be attributed to the mortgage-related market, where issuance more than doubled when compared to the first quarter of 2001. Issuance across all bond markets increased, with the exception of the corporate market, where volume decreased in all sectors—high-yield, investment-grade, and convertible. Concerns over accounting practices and credit deterioration contributed to the decline in the corporate market. Secondary market trading volume was up across all reported markets in the first quarter of 2002, with the exception of the federal agency market.
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