The nominal value of bonds outstanding of UK-based issuers totalled a record £3,353bn at the end of 2009, up 5% on the previous year. The figures are revealed in the latest Bond Markets report issued by TheCityUK, a new independent membership body, promoting the UK financial and related professional services industry.
The UK Government net debt issuance, which was below £50bn in the years prior to the economic crisis, increased to £211bn in the financial year 2009/10 and is likely to range between £100bn and £150bn over the next three years. The outstanding volume of international bonds in the UK, which account for 70% of the UK bond market, increased marginally in 2009 to £2,373bn, after nearly doubling in value in the two previous years. London remains the leading centre for international bond trading with an estimated 70% of secondary market turnover.
The report also reveals that overall amounts outstanding on the global bond market increased by 10% in 2009 to a record $91 trillion. Most of this was in domestic bonds with the US as the largest market accounting for 34% of the value outstanding, followed by Japan 13%. The UK's share was 6%. Concerns about the ability of some countries to continue to finance and service their debt have come to the forefront since late 2009.
Click here for the full report
Photo from Creative Commons: Flickr: by kevinzhengli