Clear demand for new bond issuance reflects strong primary market

Over the past quarter, we have witnessed the continuation of the corporate bond market rally, with optimism levels seemingly high over future growth.

On government debt, we have seen similar optimism but for how much longer this turnaround in fortunes will continue is not yet clear. From a global perspective, there have been signs of more stabilisation, particularly from a retail perspective in the US and a demand-led drive from China, which has led to something of a recovery. Although there has been slower growth than Mervyn King and others may have predicted in the UK, there has been a clear demand from the market for new bond issuance, with the primary market outperforming the secondary market. However, I expect to see a levelli...