Private debt market languishes

Quick, name the one segment of the bond market that is really languishing. If you didn't name the private debt market, it is one more reason why this market is now easily overlooked. Rated bond issuance was up 20 percent in 2006 to $880 billion; high-grade loan issuance reached $720 billion; and leveraged loan issuance was $480 billion, up 63 percent. The private placement market, however, has been stuck at $35.5 billion for four years. Competitively, other products just seem to make sense, especially in a credit boom. Many believe that issuance will pick up in 2008 because there may be some bridge loans that need refinancing and because the credit cycle could turn. Many are also expecting a pick up in issuers from overseas.

For more:
- here's the Investment Dealers' Digest article (For FierceFinance readers)