In 2018, issuance of capital securities by corporates and financial institution groups (FIG) worldwide fell 18%, from the previous year's $404bn to $330bn, according to Dealogic.
Towards the end of the year, investors felt increasingly negative about the immediate future, including the likelihood of the Federal Reserve tightening rates and the prospect of a US-China trade war. "The market was difficult in the fourth quarter," acknowledges Jean-Marc Mercier, HSBC's global co-head of debt capital markets (DCM). "Investors were more risk-off. They were going to covered bonds and high-grade bonds, not hybrids."
