Wednesday, December 9, 2009

Size of Bond Markets

To give a perspective on the size of Bond Markets.

Data from 2008 (SIFMA report)

Total outstanding debt in US Bond Market is $ 33 trillion. We'll break this into the following sectors -

1. Mortgage - 26.57 %
2. Corporate - 18.52 %
3. Treasury - 18.16 %
4. Money M - 11.32 %
5. Agency - 9.58 %
6. Asset - 7.98 %
7. Muncipal - 7.87 %

As of 2008, Mortgage backed bonds constitute the biggest sector in the US Bond market, followed by the bonds issued by companies (corporate sector).

The size of the Treasury sector in 2008 was 18.16 %, or 6.08 trillion. The total US debt for the same year was 9.99 trillion. So, Treasury bonds constitute most of the US Govt's debt.

A Comparison of various borrowers -

US Govt - 9985 billion (Including 6082 billion treasury debt)
Japan Govt - 9294 billion
India Govt - 1989 billion
Russia Govt - 141 billion (One of the lowest)
GM - 28 billion (When it filed for Bankruptcy in 2009)

Reference - http://www.sifma.org/uploadedFiles/Research/Statistics/SIFMA_USBondMarketOutstanding.pdf

1 comment:

Mihir jha said...

Hey Xavier,

Good start-up!!

Me and some of my friends are going to start an online magazine called "Reader's Qutoient" this 26th...its for a social cause...i wanted to share the idea with you and get your feedback...please let me know if you wanna know the details and give ur suggestions...i can be contacted at mihirjha@readersquotient.com