Public sector accounts for sturdy growth bond market in 2008

22/01/2009 15:00

The Euronext bond market in Amsterdam has grown considerably last year despite the global financial crisis. The total value of bonds issued on the Amsterdam Stock Exchange increased by 15 percent to 780 billion euro. The increase over 2007 was more than 10 percent.

Public sector largest player

For the first time since 1998, the public sector has regained its position as largest player on the bond market in Amsterdam. In particular during the last quarter of 2008, the public sector managed to raise capital to finance support programs.

Suspicion dominated the market and investors tended to avoid risks in 2008. In the period July–November, 12 billion euro worth of bonds was issued, whereas over the first six months of 2008, the amount was more than three times as high.

In December, the bond market picked up again, as a result of the granting of government guarantees and the total value of bonds issued by the financial sector amounted to 34 billion euro. The largest part (nearly 30 billion euro) concerned so-called asset-backed securities. Asset-backed securities are bonds linked to underlying assets, mostly mortgages.

Bond emissions, 2008

Bond emissions, 2008

Financial sector has issued bonds worth 445 billion euro

Despite the serious problems on the emission market, the financial sector had issued 445 billion euro worth of bonds quoted on the Amsterdam market. The public sector stayed far behind, accounting for only 270 billion euro. With more than 23 billion euro by the end of 2008, the rest of the private sector has been stable for years.

Value of euro bonds quoted on the Euronext Amsterdam market

Value of euro bonds quoted on the Euronext Amsterdam market

Jos van Heiningen