Global new bond issuance through August 2019 totalled $4.6 trillion, up 11.8% on the same stage of 2018, according the the latest data from S&P Global Ratings.

Many sectors have seen increases in issuance, led by the international public finance sector where the total of $595 billion through August was 74.3% higher than the same point of 2018. 

Nonfinancials including infrastructure also had another strong August, coming in at a year-to-date total of $1.56 trillion, up from $1.41 trillion last year.

S&P Global Ratings said issuance in US public finance and global structured finance was “unusually strong” in August, bringing the sectors’ year-to-date growth to 5.4% and 6.5% respectively.

Meanwhile, global financial services issuance is now up 2% for the year, reaching $1.4 trillion — boosted mainly by Chinese banks.

“We expect global bond issuance to finish 2019 roughly 4% higher than the 2018 total,” said Nick Kraemer, head of S&P Global Ratings Performance Analytics.

S&P said global financing conditions generally remain positive in 2019, on the back of softer stances by the US Federal Reserve and European Central Bank, supporting solid bond issuance totals even in the typically slow month of August.

S&P Global Ratings said however that lower-rated issuers — ‘B’ and below –have seen a declining trend in the number of issues coming to market since the start of the year, and yields on these issues have tended to be more volatile than in recent years.

“Easing monetary policies will also have to battle slowing global economic growth expectations and likely financial market disruptions as the US-China trade dispute winds on, which could moderate the growth rate for global bond issuance,” said S&P Global Ratings.