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published: 2.15.02
New issue volume in the U.S. bond market reached a new record in 2001, totaling $4.6 trillion, up from $2.7 trillion a year earlier. The Federal Reserve lowered interest rates an unprecedented eleven times in 2001, creating a sustained low-interest rate environment that was favorable to bond issuers. In addition, economic uncertainty and volatile stock markets led investors to seek the relative safety and stability of fixed income investments. Issuance was higher across all bond markets in 2001, with records set in the mortgage-related, federal agency, corporate, and asset-backed markets. Long-term municipal issuance was strong, and Treasury coupon issuance increased for the first time since 1996. Secondary market trading volume was higher across all reported sectors, with the exception of the municipal market where trading volume was unchanged from the level reached in 2000.
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