Declines on the Rise

Peering at projections for 2008 may make one a bit uneasy. For example, the Securities Industry and Financial Markets Association (SIFMA) 2008 U.S. Market Outlook estimate large declines. The forecast projects a median 15% decline in fixed-income issuance this year, to $3.4 trillion from the estimated $4.0 trillion issued in 2007. Also, corporate bond issuance is expected to be $965 billion, near historically high levels, although that figure reflects a 14.8% decline from 2007 issuance levels. Furthermore, high-yield and investment-grade issuance are both expected to fall around 15% in 2008, to $115 billion and $850 billion, respectively.