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Fact Book 2010
SIFM
A F
act Bo
ok 2
010
120 Broadway, 35th FloorNew York, NY 10271-0080TEL 212.313.1200 FAX 212.313.1301www.sifma.org
Editor Charles M. Bartlett, Jr.
Produced by SIFMA Research Department
Copyright © 2010 by the Securities Industry and Financial Markets Association 120 Broadway
New York, NY 10271-0080 (212) 313-1200
[email protected], www.sifma.org
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To order, please visit our website: www.sifma.org/factbook
2010 FACT BOOK
2
HIGHLIGHTS ................................................................................................................................... 4
CAPITAL MARKETS ...................................................................................................................... 7Corporate Capital Raised in the U.S. and U.S. Initial Public Offerings ................................................................ 9Corporate Capital Raised in the U.S. - Value and Number of Issues .................................................................. 10U.S. Private Placements - Value and Number of Issues ........................................................................................ 12Medium Term Note Programs - Value and Number of Issues ............................................................................ 14U.S. Municipal Bond Underwritings - Value and Number of Issues .................................................................. 16Net Issuance of Government and Corporate Securities in the U.S. ................................................................... 18U.S. Equity and Debt Outstanding .......................................................................................................................... 19U.S. Mergers and Acquisitions - Announced and Completed ............................................................................ 20Global Mergers and Acquisitions - Announced and Completed ........................................................................ 21U.S. Corporate Underwritings - Value and Number of Issues ............................................................................ 22
SECURITIES INDUSTRY .............................................................................................................25Financial Data of NYSE Reporting Firms .............................................................................................................. 27Securities Industry Employment ............................................................................................................................. 28FINRA-Reporting Firms and Registered Representatives ................................................................................... 29NYSE-Reporting Firms Aggregate Profitability .................................................................................................... 30NYSE-Reporting Firms Aggregate Total and Equity Capital .............................................................................. 31NYSE Aggregate Income Statement ........................................................................................................................ 32U.S. Investment Banking Fee Data .......................................................................................................................... 34Global Investment Banking Fee Data .................................................................................................................... 35Definitions for Major Income Statement Reporting Lines .................................................................................. 36
MARKET ACTIVITY ....................................................................................................................37Stock Market Capitalization (NYSE, AMEX, NASDAQ) ..................................................................................... 39Number of Exchange-Listed Companies (NYSE, AMEX, NASDAQ) ............................................................... 40Margin Credit at Broker-Dealers ............................................................................................................................. 41New York Stock Exchange Turnover Rate .............................................................................................................. 41U.S. Equity Markets - Share and Dollar Volume (NYSE, NASDAQ, AMEX) ................................................... 42Average Daily Trading Volume in the U.S. Bond Markets ................................................................................... 45Daily Share and Dollar Volume in the U.S. Equity Markets ................................................................................ 46 Stock Market Indices - Year-End Levels ................................................................................................................. 47Stock Market Indices – Annual Percentage Change ............................................................................................. 48Dow Jones Industrial Average - High, Low, Close ................................................................................................ 49Compound Annual Rates of Return ....................................................................................................................... 50Mutual Fund Net New Cash Flow ........................................................................................................................... 51Mutual Fund Assets ................................................................................................................................................... 52Futures Contracts Traded on U.S. Exchanges ........................................................................................................ 53Options Contracts Traded on U.S. Exchanges ....................................................................................................... 5480 Years of Long-Term Municipal Bond Defaults................................................................................................. 55Long-Term Municipal Issuance ............................................................................................................................... 56Bank Qualified Bonds ............................................................................................................................................... 57Municipal Market Trades by Trade Type ............................................................................................................... 58
TABLE OF CONTENTS
3
INVESTOR PARTICIPATION .......................................................................................................59U.S. Holdings of Equities - Households vs. Institutions ....................................................................................... 61Number of Public Customer Accounts at Broker-Dealers ................................................................................... 62U.S. Family Holdings of Stock / Household Equity Ownership .......................................................................... 63U.S. Household Liquid Financial Assets ................................................................................................................. 64U.S. Holdings of Equities by Investor Type ............................................................................................................ 67Net Acquisitions of Corporate Equities .................................................................................................................. 69
GLOBAL MARKETS ......................................................................................................................71Global Capital Markets ............................................................................................................................................. 73Global Equity Market Capitalization ...................................................................................................................... 74Global Bond Market Outstanding ........................................................................................................................... 75International Security Offerings - Value and Number of Issues ......................................................................... 76International Security Offerings by U.S. Issuers - Value and Number of Issues ............................................... 77Foreign Gross Activity in U.S. Securities ................................................................................................................ 78Foreign Net Purchases of U.S. Securities ................................................................................................................ 79U.S. Gross Activity in Foreign Securities ................................................................................................................ 80U.S. Net Purchases of Foreign Securities ................................................................................................................ 81Foreign Holdings of U.S. Securities......................................................................................................................... 82U.S. Holdings of Foreign Securities......................................................................................................................... 83Foreign Acquisitions of U.S. Securities ................................................................................................................... 84U.S. Investors Acquisitions of Foreign Securities .................................................................................................. 84Major Global Stock Market Indices ........................................................................................................................ 85Foreign Exchange Rates ............................................................................................................................................ 86American Depositary Receipts (ADRs) ................................................................................................................. 87Global Equity Market Capitalization ...................................................................................................................... 88Global Bond Market Outstanding ........................................................................................................................... 90Global Bond Market Issuance .................................................................................................................................. 91Global Equity Markets Trading Volume................................................................................................................. 92Foreign Gross Transactions in U.S. Equities by Country and Region ................................................................ 94Foreign Net Purchases of U.S. Equities by Country and Region ........................................................................ 95U.S. Gross Transactions in Foreign Stocks by Country and Region ................................................................... 96U.S. Net Purchases of Foreign Stocks by Country and Region ........................................................................... 97Global Derivatives Market ....................................................................................................................................... 98
SAVINGS AND INVESTMENT ...................................................................................................99Federal Receipts, Outlays, Deficit and Debt ........................................................................................................ 101Economic Indicators ............................................................................................................................................... 102Interest Rates and Bond Yields .............................................................................................................................. 103Household Savings Rates of Major Nations ......................................................................................................... 104Individual Retirement Accounts ........................................................................................................................... 105401(k) Assets ............................................................................................................................................................ 106U.S. Retirement Assets ............................................................................................................................................ 107Private Pension Fund Assets .................................................................................................................................. 108Income Sources for Those Aged 65 or Older ....................................................................................................... 112IRA Assets by Type of Financial Institution ........................................................................................................ 113
4
Chapter 1 - Capital Markets
The securities industry raised nearly $1.6 trillion of capital for U.S. businesses in 2009 through cor-porate underwriting activity in the United States, an 8.0 percent increase from the previous year when $1.5 trillion was raised. To put this into perspective, over $24.3 trillion in new capital was raised during the first ten years of the twenty-first century, more than one and half times than what was raised in the prior ten years.
Debt issuance (including straight and convert-ible debt), asset-backed, non-agency mortgage-backed securities, and private placements, totaled $1.1 trillion in 2009, a 19.2 percent increase from 2008 debt issuance levels. Corporate debt issu-ance, investment grade and high yield, increased nearly 25 percent from 2008. Non-agency resi-dential MBS issuance continued to be nearly non-existent, declining for the third consecutive year. ABS issuance volume was $146.2 billion in 2009, up 4.8 percent from 2008, with auto, equipment leases and other showing signs of life, while the credit card, home equity and student loan sectors continued to struggle. While an improvement, the 2009 ABS issuance total is still a far cry from the pre-credit crisis period; the ABS sector averaged over $500 billion in annual issuance during the first eight years of this decade.
The primary equity markets raised a record $267.3 billion in 2009, more than 10.2 percent higher than $242.6 billion raised in 2008, eclipsing the previous 2007 record of $247.5 billion. IPO volume, exclud-ing closed-end funds, was $24.4 billion, up 241 per-cent from 2008, while closed-end fund IPOs fell by 37 percent to $2.4 billion. Follow-on, or secondary issuance, reached a record high $230.8 billion in 2009, up more than 50 percent from the prior re-cord high $153.7 billion reached in 2008.
U.S. merger and acquisition (M&A) announced activity totaled $710.5 billion in 2009, 21.6 per-cent below the $906.1 billion in 2008. The num-ber of announced deals totaled 7,448 in 2009, a decline of 17.3 percent from the previous year’s 9,369 deals announced, while completed U.S. M&A deals fell 21.7 percent to 6,322 from 8,071 deals completed in 2008. Global M&A announce-ments totaled $1,957.3 billion, a decline of 27.9 percent in value on 39,002 deals, compared to $2,716.3 billion on 40,992 deals in 2008. Global completed deals totaled $1,735.9 billion, down 39.2 percent in value on 28,797 deals compared to $2,856.3 billion on 31,591 deals in 2008.
Chapter 2 - Securities Industry
National securities industry employment, as re-ported by the U.S. Department of Labor, reached a 2009 high point of 839,800 in January, well below the record monthly high of 869,600 jobs set in June 2008. Following four consecutive years of increas-ing employment, the securities industry experi-enced two consecutive annual declines; total secu-rities industry employment in the U.S. declined by 7.0 percent in 2009, closing the year at 781,800 jobs, following a drop of 0.2 percent in 2008.
Pre-tax net income (profits) for NYSE broker-dealers doing a public business in the U.S. reached an all-time high of $61.4 billion, following two years of losses. Total revenues were $188.1 billion in 2009, up 5.6 percent compared to the previ-ous year, while total expenses fell 46.5 percent to $126.6 billion due mostly to the dramatic decline in interest expense.
HIGHLIGHTS
5
Fee revenue from investment banking services – Mergers & Acquisitions, Equity Capital Markets, Debt Capital Markets and Loans – declined for the second straight year, both in the U.S. and glob-ally. U.S. and Global investment banking fees fell 8.3 percent and 0.1 percent, respectively, in 2009 following declines of 35.1 percent and 35.3 per-cent decline in 2008, respectively. In the U.S., the most significant decline was that in M&A where fees fell nearly 40 percent for the second consecu-tive year. Globally, however, the strength of Equity Capital Market revenue, which rose by 81 percent, compensated for drops in M&A and Loan, keep-ing overall global fee levels flat.
Chapter 3 - Market ActivityThe U.S. stock markets rose in 2009, the larg-est percentage increase since 2003 for all of the U.S. stock markets. For the year, the Dow Jones Industrial Average (DJIA) rose 1,651.7 points, or 18.8 percent, it’s second best percentage gain of the decade, and ended 2009 at 10,428.1. The DJIA has posted an annual gain of 18 percent or more twenty-eight times since 1915, Following its third worst point drop in its 80 year history in 2008, the Standard & Poor’s 500 Index (S&P 500) gained 211.9 points or 23.5 percent to close 2009 at 1115.1. The NASDAQ Composite Index rose 43.9 percent to end the year at 2269.2, the best percentage increase since 2003, and its seventh 30 percent or more annual gain since the NASDAQ’s inception in 1971.
Average daily share trading volume on the major U.S. stock markets declined in 2009. New York Stock Exchange (NYSE) daily share volume de-creased by 16.7 percent compared to the previous year’s average, ending five years of growth. The NYSE average daily share volume was 2.181 bil-lion shares in 2009, 16.4 percent below the record
level reached in 2008. NASDAQ daily volume de-clined to 2.224 billion shares in 2009, 1.9 percent below the 2008 level. Total trading volume on the NYSE was over 549.6 billion shares in 2009; total share trading in the three years 2007-2009 was greater than the total for all shares traded in the 1970s, 1980s and 1990s combined.
Average daily dollar volume declined as well. NYSE average daily dollar volume fell for the sec-ond straight year in 2009, falling to $46.7 billion from $82.4 billion in 2008, which is 46.2 percent below the record high $86.8 billion set in 2007. NASDAQ average daily volume totaled $41.5 bil-lion in 2009, 30.5 percent below the $59.7 billion daily average in 2008 and well off the record daily average volume of $80.9 billion set in 2000.
Fixed-income average daily trading volume de-clined by 21.2 percent to $814.8 billion for 2009, well off the 2008 record of $1,033.8 billion shares and ending three consecutive years of growth. Av-erage daily volume was led by the Treasury and agency MBS sectors, which accounted for nearly 87 percent of the overall volume for the second consecutive year.
Chapter 4 - Investor ParticipationAt year-end 2009, Federal Reserve Board data showed that nearly seventy percent of U.S. house-holds’ liquid financial assets were invested in securities-related products such as stocks, bonds and mutual funds, with the balance in bank de-posits and certificates of deposits. U.S households’ total liquid assets reached $23.9 trillion in 2009, of which 26.7 percent were in bank products, 32.2 percent in equities, 18.5 percent in stock and bond mutual funds, 7.7 percent in government and mu-nicipal bonds, 9.4 percent in corporate bonds and 5.5 percent in money market funds.
6
Chapter 5 - Global MarketsAmericans’ ownership of securities increased sig-nificantly since 1980, and so too has US investment activity in foreign securities. U.S. gross activity (purchases and sales) in foreign securities grew to $10.5 trillion in 2009 from $53.1 billion in 1980, although it was 33.4 percent below 2008 activity and well off the 2007 record level of $16.6 trillion. Foreign gross activity in all U.S. securities also fell in 2009, by 33.6 percent compared to 2008 but at $40.4 trillion level is still many multiples of its $197.8 billion level in 1980.
After setting an all-time record of $64.6 trillion at year-end 2007; the global stock market selloff caused global market capitalization to decline a significant 46 percent 2008, but it recovered strong-ly in 2009, increasing 39.6 percent to end the year at $48.7 trillion. Global trading volume suffered its second back-to-back annual decline in ten years in 2009. The size of global bond markets outstanding1 increased for the twelfth consecutive year to $91.2 trillion at the end of 2009. Since 1990, the size of the global fixed-income markets has grown fivefold.
Chapter 6 - Savings & Investment
On the economic front, U.S. real Gross Domestic Product (GDP) declined 2.4 percent in 2009, com-pared to 0.4 percent growth in 2008. Inflation, as measured by the Consumer Price Index (CPI), de-creased by 0.4 percent in 2009, compared with a rise of 3.8 percent in the prior year. The Federal Reserve continued to hold rates throughout 2009 down to the range of 0.00 - 0.25 percent, established on De-cember 16, 2008. This holding pattern kept Federal Funds target rate at a 50-year record low.
The household savings rate of Americans contin-ued to lag behind most of other major industrial-ized countries; for the first time in 50 years, how-ever, the U.S. household savings rate has exceeded that of Japan. The Organization for Economic Co-operation and Development (OECD) estimated that the U.S. household savings rate rose to 3.9 per-cent in 2009 from 2.7 percent in 2008. By compari-son, Japan household savings rate was 2.8 percent, which ranked as the lowest among the seven major OECD member countries. The United Kingdom and Canada exceeded 4.3 percent; while France, Germany and Italy had double-digit household savings rates greater than 10 percent.
Total U.S. retirement assets grew to $16.04 trillion in 2009 according to Federal Reserve Flow of Funds Accounts, 14.5 percent more than the $14.01 tril-lion in 2008, but still below the record level of $18.1 trillion set in 2007. Total pension assets rose 16.6 percent to $11.8 trillion and assets held in IRAs rose by 18.19 percent to the $4.2 trillion.
CAPITAL MARKETS
Capital Markets • 9
Corporate Capital Raised in the U.S.*
U.S. Initial Public Offerings**
* Consisting of common stock, preferred stock, straight corporate debt, convertible debt, asset backed debt, non-agency mortgage-backed securities and private placements.
** Excludes closed-end fundsSource: Thomson Reuters (http://thomsonreuters.com/products_services/financial/financial_products/deal_making/investment_banking/league_tables)
$ Billions
$ Billions
2005 200920001995199019851980197519700
1000
2000
3000
4000
0
10
20
30
40
50
60
70
80
'09'05 '00'95'90'85'80'75'70
1.5 1.9 1.90.1 0.2 0.30.3 0.2 0.6 1.4 3.1
1.3
12.58.4
18.114.3
5.7 6.1 4.5
16.4
24.1
41.3
28.3 30
49.9
43.2
36.6
64.3
75.8
36
25.8
15.9
24.4
47.9
39.6
46.1
50.7
7.23.83.3
10
Corporate Capital Raised in the U.S.($ Billions)
TotalUnder-written %
Private Placement %
Medium Term Notes %
1985 210.6 113.2 54 79.7 38 17.7 8
1986 393.5 237.4 60 119.5 30 36.6 91987 398.3 222.0 56 134.4 34 41.9 111988 429.0 171.4 40 190.6 44 67.0 161989 394.8 91.2 23 200.0 51 103.6 26 1990 323.8 115.3 36 131.1 40 77.3 241991 475.2 249.6 53 118.1 25 107.5 231992 615.8 365.3 59 127.7 21 122.8 201993 858.9 518.7 60 192.9 22 147.4 171994 607.7 295.2 49 141.0 23 171.5 28 1995 672.8 346.8 52 134.3 20 191.7 281996 939.6 556.5 59 203.4 22 179.7 191997 1,304.6 711.4 55 366.7 28 226.5 171998 1,726.4 1,008.6 58 466.3 27 251.4 151999 1,722.0 996.1 58 446.5 26 279.3 16 2000 1,707.9 1,009.3 59 483.2 28 215.5 132001 2,160.2 1,287.6 60 591.1 27 281.5 132002 1,831.1 1,336.3 73 347.5 19 147.3 82003 2,427.2 1,682.6 69 520.3 21 224.3 92004 2,802.6 2,148.3 77 602.5 21 51.8 2
2005 3,240.4 2,574.1 79 612.4 19 53.9 22006 3,584.1 2,975.6 83 600.5 17 8.0 02007 3,455.5 2,735.7 79 719.8 21 0.0 02008 1,475.8 1,179.4 80 296.4 20 0.0 02009 1,575.3 1,377.4 87 197.9 12 0.0 0
Source: Thomson Reuters (http://www.thomsonreuters.com/products_services/financial/financial_products/deal_making/investment_banking/league_tables)
Capital Markets • 11
Corporate Capital Raised in the U.S.(Number of Issues)
TotalUnder-written %
Private Placement %
Medium Term Notes %
1985 4,169 1,929 46.27 2,185 52.41 55 1.32
1986 5,647 3,046 53.94 2,505 44.36 96 1.701987 5,135 2,428 47.28 2,593 50.50 114 2.221988 5,405 1,872 34.63 3,355 62.07 178 3.291989 4,603 1,489 32.35 2,927 63.59 187 4.06 1990 3,965 1,333 33.62 2,470 62.30 162 4.091991 6,127 2,993 48.85 2,920 47.66 214 3.491992 7,276 3,870 53.19 3,225 44.32 181 2.491993 10,125 5,651 55.81 4,257 42.04 217 2.141994 7,329 4,039 55.11 3,139 42.83 151 2.06 1995 6,839 4,350 63.61 2,324 33.98 165 2.411996 8,727 5,838 66.90 2,732 31.31 157 1.801997 10,600 6,846 64.58 3,595 33.92 159 1.501998 10,780 6,563 60.88 4,081 37.86 136 1.261999 9,562 5,710 59.72 3,747 39.19 105 1.10 2000 8,163 4,553 55.78 3,540 43.37 70 0.862001 7,840 4,891 62.39 2,872 36.63 77 0.982002 7,524 5,126 68.13 2,347 31.19 51 0.682003 8,843 5,637 63.75 3,169 35.84 37 0.422004 9,367 6,059 64.68 3,289 35.11 19 0.20
2005 9,738 6,326 64.96 3,403 34.95 9 0.092006 10,063 6,625 66.00 3,437 34 1 0.02007 8,361 5,382 64.00 2,979 36 0 0.02008 3,072 1,767 58.00 1,305 42 0 0.02009 3,456 2,447 71.00 1,009 29 0 0.0
Source: Thomson Reuters (http://thomsonreuters.com/products_services/financial/financial_products/deal_making/invest-ment_banking/league_tables)
12
U.S. Private Placements($ Billions)
Total Debt % Equity %
1985 79.7 70.4 88 9.3 12
1986 119.5 107.1 90 12.4 10
1987 134.4 119.9 89 14.5 11
1988 190.6 172.7 91 17.9 9
1989 200.0 168.5 84 31.5 16
1990 131.1 113.6 87 17.5 13
1991 118.1 107.3 91 10.8 9
1992 127.7 112.8 88 14.9 12
1993 192.9 174.2 90 18.7 10
1994 141.0 117.1 83 23.9 17
1995 134.3 112.8 84 21.5 16
1996 203.4 159.0 78 44.4 22
1997 366.7 286.3 78 80.4 22
1998 466.3 376.9 81 89.5 19
1999 446.5 368.8 83 77.7 17
2000 483.2 358.7 74 124.4 26
2001 591.1 510.5 86 80.6 14
2002 347.5 307.1 88 40.5 12
2003 520.3 491.4 94 28.9 6
2004 602.5 570.4 95 32.1 5
2005 612.4 554.7 91 57.7 9
2006 600.5 524.0 87 76.5 13
2007 719.8 580.4 81 139.4 19
2008 296.4 168.6 57 127.8 43
2009 197.9 164.0 83 34.0 17
Source: Thomson Reuters (www.thomsonreuters.com/products_services/financial/financial_products/deal_making/investment_ banking/league_tables)
Capital Markets • 13
U.S. Private Placements(Number of Issues)
Total Debt % Equity %
1985 2,185 1,810 83 375 17
1986 2,505 2,280 91 225 9
1987 2,593 2,397 92 196 8
1988 3,355 3,081 92 274 8
1989 2,927 2,619 89 308 11
1990 2,470 2,267 92 203 8
1991 2,920 2,643 91 277 9
1992 3,225 2,934 91 291 9
1993 4,257 3,933 92 324 8
1994 3,139 2,751 88 388 12
1995 2,324 2,009 86 315 14
1996 2,732 2,230 82 502 18
1997 3,595 2,925 81 670 19
1998 4,081 3,555 87 526 13
1999 3,747 3,285 88 462 12
2000 3,540 2,879 81 661 19
2001 2,872 2,063 72 809 28
2002 2,347 1,779 76 568 24
2003 3,169 2,635 83 534 17
2004 3,289 2,729 83 560 17
2005 3,403 2,887 85 516 15
2006 3,437 2,719 79 718 21
2007 2,979 2,028 68 951 32
2008 1,305 519 40 786 60
2009 1,009 515 51 494 49
Source: Thomson Reuters (www.thomsonreuters.com/products_services/financial/financial_products/deal_making/investment_ banking/league_tables)
14
Medium-Term Note Programs($ Billions)
MTNsWorldwide
US IssuersWorldwide
MTNsDomestic
US IssuersDomestic
1985 19.3 17.9 17.8 17.71986 54.8 39.2 36.8 36.61987 63.6 46.8 44.4 41.91988 92.5 76.1 69.8 67.01989 137.3 115.2 105.9 103.6
1990 125.0 92.0 80.4 77.31991 182.7 127.1 115.6 107.51992 265.5 156.8 128.6 122.81993 344.2 206.3 160.0 147.41994 420.6 223.9 182.6 171.5
1995 554.3 272.2 197.1 191.71996 608.4 297.9 191.6 179.71997 799.3 328.0 248.5 226.51998 944.8 328.4 272.6 251.41999 1,196.6 433.7 307.8 279.3
2000 1,127.5 409.5 220.2 215.52001 1,079.1 378.8 290.4 281.52002 1,045.9 392.3 150.3 147.32003 1,021.9 410.3 227.5 224.32004 797.5 144.9 52.8 51.8
2005 785.1 184.7 53.9 53.92006 1,065.6 167.4 8.0 8.02007 383.4 40.0 0.0 0.02008 90.3 0.0 0.0 0.0
2009 11.0 11.0 0.0 0.0
Source: Thomson Reuters (www.thomsonreuters.com/products_services/financial/financial_products/deal_making/investment_banking/league_tables)
Capital Markets • 15
Medium-Term Note Programs(Number of Issues)
MTNsWorldwide
US IssuersWorldwide
MTNsDomestic
US IssuersDomestic
1985 67 58 56 551986 183 115 97 961987 206 130 122 1141988 266 200 185 1781989 293 219 192 187
1990 260 183 171 1621991 330 245 230 2141992 345 217 191 1811993 410 247 235 2171994 350 181 163 151
1995 403 198 172 1651996 434 200 168 1571997 449 202 170 1591998 416 178 147 1361999 441 144 114 105
2000 387 115 74 702001 363 107 82 772002 318 95 53 512003 217 62 39 372004 148 28 20 19
2005 94 23 9 92006 88 15 1 12007 30 3 0 02008 2 0 0 02009 1 1 0 0
Source: Thomson Reuters (www.thomsonreuters.com/products_services/financial/financial_products/deal_making/investment_banking/league_tables)
16
U.S. Long-Term Municipal Bond Underwritings*($ Billions)
Compet. Nego. Total Private Total Rev. Rev. Rev. Compet. Nego. Total Placement Muni. Bonds Bonds Bonds G.O.s G.O.s G.O.s Bonds Bonds 1985 10.2 151.5 161.7 17.6 22.1 39.7 5.5 206.91986 10.0 92.7 102.7 23.0 21.9 44.9 3.0 150.61987 7.1 63.6 70.7 16.3 14.1 30.4 3.9 105.01988 7.8 76.7 84.5 18.8 12.0 30.8 2.3 117.61989 8.9 75.2 84.1 20.7 17.0 37.7 3.2 125.0 1990 7.6 78.1 85.7 22.6 17.6 40.2 2.1 128.01991 11.1 101.5 112.6 29.1 27.9 57.0 3.2 172.81992 12.5 138.7 151.2 31.7 48.7 80.4 3.2 234.81993 20.8 177.3 198.1 34.8 56.9 91.7 2.7 292.51994 17.2 89.7 106.9 32.2 23.1 55.3 2.9 165.1 1995 13.5 84.0 97.5 27.3 32.9 60.2 3.9 161.61996 15.7 101.4 117.1 31.3 33.1 64.4 3.7 185.21997 12.4 129.5 141.9 35.4 36.8 72.2 6.6 220.71998 21.4 165.8 187.2 43.9 49.6 93.5 6.1 286.81999 14.4 134.2 148.6 38.4 32.4 70.8 8.1 227.5 2000 13.3 115.0 128.3 35.3 31.0 66.3 6.2 200.82001 17.3 165.9 183.2 45.8 55.6 101.4 3.1 287.72002 19.5 209.9 229.4 52.3 73.1 125.4 2.7 357.52003 21.8 216.4 238.2 54.0 86.6 140.6 3.9 382.72004 17.3 210.5 227.8 51.5 77.6 129.1 2.9 359.82005 20.6 241.8 262.4 55.5 88.5 144.0 1.8 408.2
2006 20.9 246.6 267.5 48.7 65.9 114.6 4.4 386.52007 21.7 272.6 294.3 51.1 79.0 130.1 4.9 429.3 2008 15.5 261.3 276.8 37.8 72.2 110.0 4.5 391.32009 11.8 240.0 251.8 46.3 108.9 155.2 2.9 409.9
* Excludes taxable bonds and maturities under 13 months
Note: Includes Competitive Revenue Bonds, Negotiated Revenue Bonds, Total Revenue Bonds, Competitive General Obligation Bonds, Negotiated General Obligation Bonds, Total Municipal Bonds
Source: Thomson Reuters (http://thomsonreuters.com/products_services/financial/financial_products/deal_making/investment_banking/league_tables)
Capital Markets • 17
U.S. Long-Term Municipal Bond Underwritings*(Number of Issues)
Compet. Nego. Total Private Total Rev. Rev. Rev. Compet. Nego. Total Placement Muni. Bonds Bonds Bonds G.O.s G.O.s G.O.s Bonds Bonds 1985 364 3,877 4,241 746 624 1,370 317 5,9281986 762 2,767 3,529 2,831 1,047 3,878 292 7,6991987 691 2,592 3,283 2,403 1,131 3,534 234 7,0511988 743 3,201 3,944 2,705 1,245 3,950 261 8,1551989 779 3,761 4,540 2,734 1,492 4,226 393 9,159 1990 729 3,411 4,140 2,753 1,532 4,285 335 8,7601991 824 4,106 4,930 3,195 2,367 5,562 439 10,9311992 1,017 5,265 6,282 3,226 3,082 6,308 367 12,9571993 1,044 5,776 6,820 3,515 3,684 7,199 392 14,4111994 835 4,589 5,424 3,168 2,202 5,370 448 11,242 1995 763 4,276 5,039 2,828 2,245 5,073 620 10,7321996 873 4,742 5,615 3,270 2,554 5,824 718 12,1571997 839 5,044 5,883 3,308 2,576 5,884 883 12,6501998 1,116 6,092 7,208 3,859 3,503 7,362 834 15,4041999 873 5,528 6,401 3,397 2,542 5,939 870 13,210 2000 769 4,556 5,325 3,262 2,005 5,267 668 11,2602001 900 5,557 6,457 3,805 3,069 6,874 455 13,7862002 884 5,621 6,505 3,860 3,692 7,552 341 14,3982003 953 5,735 6,688 4,096 3,969 8,065 277 15,0302004 790 5,232 6,022 3,401 3,894 7,295 286 13,603
2005 737 5,371 6,108 3,385 4,279 7,664 176 13,9482006 666 5,255 5,921 3,182 3,355 6,537 284 12,7422007 622 5,372 5,994 3,028 3,235 6,263 372 12,6292008 478 4,235 4,713 2,882 2,776 5,658 315 10,6862009 512 3,762 4,274 3,158 4,005 7,163 300 11,737
* Excludes taxable bonds and maturities under 13 months
Source: Thomson Reuters (http://thomsonreuters.com/products_services/financial/financial_products/deal_making/investment_banking/league_tables)
18
Net Issuance of Government and Corporate Securities in the U.S.(New Issues Less Retirements in $ Billions)
U.S. Corporate Corporate Government Municipal Equities Bonds Securities* Bonds
1970 5.4 23.2 21.9 12.0 1971 14.7 24.5 30.9 16.2 1972 13.1 20.6 23.5 14.2 1973 12.8 15.5 26.9 16.0 1974 5.2 29.0 33.1 15.3 1975 7.8 42.5 95.1 15.0 1976 12.6 38.3 83.9 20.9 1977 5.0 40.2 79.5 29.7 1978 3.0 31.7 89.3 51.3 1979 -4.4 24.6 83.2 39.3
1980 14.5 36.4 121.0 35.3 1981 -10.4 36.9 131.1 44.2 1982 7.6 52.1 225.9 64.4 1983 26.7 46.5 253.0 67.1 1984 -72.6 88.2 272.3 75.5 1985 -71.4 143.4 325.2 208.2 1986 -69.8 222.5 395.5 59.9 1987 -64.0 164.7 311.9 91.6 1988 -106.6 162.2 275.9 59.3 1989 -102.6 119.5 295.8 52.9
1990 -45.7 122.9 414.4 49.3 1991 72.3 165.6 424.1 87.8 1992 99.6 167.2 460.2 23.3 1993 133.4 278.2 421.4 66.3 1994 12.8 153.5 448.0 -35.9 1995 1.5 328.7 348.7 -57.6 1996 14.7 323.6 376.4 -6.5 1997 -46.4 336.4 236.8 56.9 1998 -113.3 507.5 419.0 84.2 1999 1.5 374.5 522.1 54.4
2000 5.3 344.5 139.0 23.6 2001 98.3 568.6 637.1 122.9 2002 46.4 487.6 804.2 159.4 2003 143.1 667.1 977.5 137.6 2004 78.8 828.8 484.8 130.5 2005 -76.6 864.2 390.1 195.0 2006 -368.7 1,244.2 514.3 177.4 2007 -460.5 1,227.7 1,145.8 215.6 2008 308.9 -157.1 2,008.2 64.6 2009 327.0 17.1 1,390.4 128.1
* Includes U.S. Treasury securities, agency- and GSE-backed securities Source: Federal Reserve Flow of Funds Accounts (http://www.federalreserve.gov/releases/Z1/; Table F.4 Credit Market Borrowing by Instrument)
Capital Markets • 19
U.S. Equity and Debt Outstanding($ Billions)
1 The Securities Industry and Financial Markets Association estimates. 2 Interest bearing marketable public debt. 3 Includes GNMA, FNMA, and FHLMC mortgage-backed securities and CMOs and private-label MBS/CMOs. 4 Includes commercial paper, bankers acceptances, and large time deposits. Beginning in 2006, large time deposits are excluded.
Sources: U.S. Department of Treasury, Federal Reserve System, Federal Agencies, Thomson Financial, Bloomberg, SIFMA
Corporate Asset-Backed Treasury Agency Mortgage- Money Municipal Equities Securities Secutrities1 Securities2 Securities Related3 Markets4 Bonds
1985* 2,270.4 776.5 0.9 1,437.7 293.9 372.1 847.0 859.51986 2,682.2 959.3 7.2 1,619.0 307.4 534.4 877.0 920.41987 2,710.3 1,074.9 12.9 1,724.7 341.4 672.1 979.8 1,010.41988 3,075.6 1,195.7 29.3 1,821.3 381.5 772.4 1,108.5 1,082.31989 3,813.0 1,292.5 51.3 1,945.4 411.8 971.6 1,192.3 1,135.2 1990 3,531.3 1,350.4 89.9 2,195.8 434.7 1,333.4 1,156.8 1,184.41991 4,847.8 1,454.7 129.9 2,471.6 442.8 1,636.9 1,054.3 1,272.21992 5,422.0 1,557.0 163.7 2,754.1 484.0 1,937.0 994.2 1,295.51993 6,296.9 1,674.7 199.9 2,989.5 570.7 2,144.7 971.8 1,361.81994 6,317.5 1,755.6 257.3 3,126.0 738.9 2,251.7 1,034.7 1,325.9 1995 8,481.3 1,937.5 316.3 3,307.2 844.6 2,352.1 1,177.3 1,268.31996 10,279.6 2,126.5 404.4 3,666.7 925.8 2,486.1 1,393.9 1,261.81997 13,292.8 2,359.0 535.8 3,659.5 1,021.8 2,680.2 1,692.8 1,318.71998 15,547.3 2,708.5 731.5 3,542.8 1,302.1 2,955.2 1,977.8 1,402.91999 19,522.8 3,046.5 900.8 3,529.5 1,620.0 3,334.2 2,338.8 1,457.2 2000 17,627.0 3,358.4 1,071.8 3,210.0 1,853.7 3,565.8 2,662.6 1,480.92001 15,310.6 3,836.4 1,281.1 3,196.6 2,157.4 4,127.4 2,587.2 1,603.72002 12,438.3 4,132.8 1,543.2 3,469.2 2,377.7 4,686.4 2,545.7 1,763.02003 16,638.5 4,486.4 1,693.7 3,967.8 2,626.2 5,238.6 2,519.9 1,876.82004 18,947.1 4,801.7 1,827.8 4,407.4 2,700.6 5,930.5 2,904.2 2,000.2
2005 20,636.1 4,965.7 1,955.2 4,714.8 2,616.0 7,212.3 3,433.7 2,225.92006 24,339.3 5,344.6 2,130.4 4,872.3 2,651.3 8,635.4 4,008.8 2,403.32007 25,577.3 5,946.8 2,472.4 5,081.5 2,933.3 9,142.7 4,170.8 2,618.92008 15,785.5 6,205.6 2,671.8 6,082.2 3,205.2 9,099.8 3,790.9 2,683.5 2009 20,451.0 6,856.1 2,429.0 7,604.5 2,729.7 9,187.7 3,127.9 2,811.6
20
U.S. Mergers and Acquisitions
Announced Completed Value # of Value # of ($ Bils.) Deals ($ Bils.) Deals
1980 18.3 97 2.2 141981 89.4 1,091 73.5 8331982 57.9 1,782 62.5 1,5611983 104.3 2,970 66.0 2,3271984 192.7 3,530 143.0 2,5271985 209.1 1,905 147.5 1,6911986 238.1 2,915 231.5 2,4301987 259.1 3,080 195.8 2,3871988 365.7 3,534 281.3 2,8401989 307.1 4,681 270.8 3,599
1990 233.6 5,709 175.5 4,1781991 155.0 5,234 124.5 3,6031992 161.7 5,328 111.8 3,8421993 279.3 6,040 166.7 4,2501994 376.3 6,946 269.1 5,0421995 612.9 8,307 382.6 6,1241996 730.5 9,359 592.0 6,9131997 1,030.6 10,754 718.0 8,1031998 1,735.3 11,992 1,314.3 9,3301999 1,563.4 11,045 1,313.7 9,105
2000 1,741.2 11,080 1,767.9 9,0952001 771.4 7,676 1,159.7 6,4052002 439.5 7,025 555.7 5,8682003 543.8 7,721 450.8 5,9622004 848.5 8,548 770.2 6,8362005 1,118.2 9,289 912.3 7,9082006 1,508.7 10,684 1,348.7 8,8912007 1,509.3 11,287 1,716.3 9,3672008 906.1 9,369 924.7 8,0712009 710.5 7,748 728.3 6,322
Source: Thomson Reuters (http://thomsonreuters.com/products_services/financial/financial_products/deal_making/investment_banking/league_tables)
Capital Markets • 21
Global Mergers and Acquisitions
Announced Completed Value # of Value # of ($ Bils.) Deals ($ Bils.) Deals1980 18.3 97 3.1 191981 91.6 1,173 78.2 9471982 58.1 2,048 65.8 1,7271983 104.7 3,604 84.8 2,8711984 196.4 4,185 179.8 3,5711985 249.6 2,912 199.0 2,5251986 302.3 4,174 318.7 3,6561987 354.6 5,413 316.2 4,5211988 532.7 7,941 473.5 6,4451989 568.9 11,027 543.0 8,818
1990 425.7 10,028 455.9 9,8661991 332.8 13,935 376.8 13,3511992 350.0 13,350 310.9 12,8641993 436.7 13,970 360.1 13,3181994 544.4 16,189 496.8 15,612 1995 930.9 19,719 758.2 19,0411996 1,116.4 23,886 1,096.6 20,4311997 1,642.8 25,875 1,378.8 22,4361998 2,508.5 29,392 2,215.8 25,0651999 3,255.8 32,219 2,471.1 27,066 2000 3,412.4 38,769 3,713.1 29,1372001 1,695.2 30,211 2,180.2 22,5482002 1,211.4 26,544 1,320.7 19,1032003 1,394.3 28,917 1,150.5 19,1692004 1,916.0 31,222 1,739.1 22,0852005 2,663.3 33,947 2,321.6 25,5892006 3,618.9 38,792 3,065.9 28,8882007 4,272.9 43,864 4,021.7 31,5122008 2,716.3 40,997 2,856.3 31,5912009 1,957.5 39,002 1,735.9 28,797
Source: Thomson Reuters (http://thomsonreuters.com/products_services/financial/financial_products/deal_making/investment_banking/league_tables)
22
U.S
. Cor
pora
te U
nder
wri
tings
($ B
illio
ns)
Stra
ight
Cor
pora
teD
ebt
Con
vert
ible
Deb
t
Ass
et-
Bac
ked
Secu
ritie
s
Non
-A
genc
y M
ortg
age-
Back
ed
Secu
ritie
sTo
tal
Deb
t
Hig
h Yi
eld
Deb
tPr
efer
red
Stoc
kC
omm
on
Stoc
kTo
tal
Equi
tyA
ll IP
Os
“Tru
e”
IPO
sC
lose
d-En
d Fu
nd IP
Os
Tota
l U
nder
- w
ritin
g
1985
66.5
6.2
1.2
23.7
97.6
10.0
8.6
24.7
33.3
8.5
8.4
0.1
130.
9
1986
134.
99.
810
.062
.221
6.9
29.4
13.9
43.2
57.1
22.3
18.1
4.2
274.
019
8710
8.5
10.3
8.9
83.3
211.
026
.711
.441
.552
.924
.014
.39.
726
3.9
1988
99.2
4.1
14.3
83.5
201.
125
.87.
629
.737
.323
.65.
717
.923
8.4
1989
101.
15.
822
.235
.116
4.2
24.6
7.7
22.9
30.6
13.7
6.1
7.6
194.
8
1990
76.5
5.5
43.6
43.2
168.
80.
74.
719
.223
.910
.14.
55.
619
2.7
1991
160.
49.
452
.259
.228
1.2
8.8
19.9
56.0
75.9
25.1
16.4
8.7
357.
119
9223
9.6
8.4
55.8
82.5
386.
333
.729
.372
.510
1.8
39.6
24.1
15.5
488.
119
9333
9.7
15.2
62.6
117.
753
5.2
56.0
28.4
102.
413
0.8
57.4
41.3
16.1
666.
019
9422
2.2
12.2
81.7
73.7
389.
833
.315
.561
.476
.933
.728
.35.
446
6.7
1995
279.
812
.011
3.1
36.5
441.
438
.215
.182
.097
.130
.230
.00.
253
8.5
1996
342.
721
.316
8.4
51.9
584.
358
.736
.511
5.5
151.
950
.049
.90.
173
6.2
1997
466.
026
.022
3.1
69.4
784.
510
7.9
33.3
120.
215
3.4
44.2
43.2
1.0
937.
919
9861
0.9
17.9
286.
619
1.9
1,10
7.3
129.
637
.811
5.0
152.
743
.736
.67.
21,
260.
019
9962
9.2
26.9
287.
114
0.5
1,08
3.7
84.3
27.5
164.
319
1.7
66.8
64.3
2.6
1,27
5.4
2000
587.
549
.628
1.5
101.
71,
020.
334
.315
.418
9.1
204.
576
.175
.80.
31,
224.
820
0177
6.1
78.3
326.
221
8.8
1,39
9.4
77.8
41.3
128.
416
9.7
40.8
36.0
4.8
1,56
9.1
2002
636.
730
.537
3.9
288.
51,
329.
657
.237
.611
6.4
154.
041
.225
.815
.41,
483.
620
0377
5.8
72.7
461.
544
0.6
1,75
0.6
131.
137
.811
8.5
156.
343
.715
.927
.81,
906.
920
0478
0.7
32.5
651.
553
2.7
1,99
7.4
137.
933
.216
9.6
202.
772
.847
.924
.92,
200.
1
2005
752.
830
.175
3.5
901.
22,
437.
696
.329
.916
0.5
190.
462
.639
.623
.12,
628.
020
061,
058.
962
.875
3.9
917.
42,
793.
014
6.6
33.4
157.
219
0.6
57.9
46.1
11.8
2,98
3.6
2007
1,12
8.3
76.4
509.
777
3.9
2,48
8.2
136.
060
.018
7.5
247.
591
.150
.740
.42,
735.
720
0870
7.2
42.0
139.
545
.193
3.8
44.5
77.3
164.
924
2.3
11.0
7.2
3.9
1,17
6.1
2009
901.
733
.014
6.2
32.3
1,11
3.2
147.
09.
625
4.6
264.
226
.924
.42.
41,
377.
4
Not
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serv
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l_pr
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g/lea
gue_
tabl
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exclu
des b
est-
effor
ts d
eals)
Capital Markets • 23
Stra
ight
Cor
pora
te
Deb
tC
onve
rtib
le
Deb
t
Ass
et-
Back
ed
Secu
ritie
s
Non
Age
ncy
Mor
tgag
e-B
acke
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curi
ties
Tota
lD
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Pref
.St
ock
Hig
h Yi
eld
Deb
tC
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Stoc
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Equi
tyA
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Os
“Tru
e ”
IPO
s
Clo
sed
End
Fund
IP
Os
Tota
l U
nder
-w
ritin
g
1985
583
155
735
61,
101
131
135
752
883
355
353
21,
984
1986
880
232
1959
71,
728
186
177
1,22
81,
414
727
700
273,
142
1987
681
171
3063
81,
520
159
133
863
1,02
255
251
834
2,54
219
8857
356
5781
41,
500
125
119
425
550
288
225
632,
050
1989
579
8063
372
1,09
410
893
474
582
248
204
441,
676
1990
478
4110
438
21,
005
8810
402
490
214
173
411,
495
1991
1,45
983
129
516
2,18
715
240
868
1,02
040
336
736
3,20
719
921,
815
9715
961
12,
682
282
201
1,08
71,
369
604
517
874,
051
1993
2,62
115
119
51,
039
4,00
637
336
61,
489
1,86
281
870
711
15,
868
1994
1,91
396
284
730
3,02
311
422
01,
053
1,16
764
560
837
4,19
0
1995
2,42
282
324
390
3,21
812
221
01,
175
1,29
758
358
03
4,51
519
963,
179
146
525
351
4,20
117
734
21,
617
1,79
487
387
12
5,99
519
974,
310
152
610
314
5,38
625
459
81,
365
1,61
963
662
97
7,00
519
984,
202
9472
547
85,
499
229
616
971
1,20
039
737
423
6,69
919
993,
409
8870
840
94,
614
173
323
1,02
81,
201
573
544
295,
815
2000
2,38
214
980
832
33,
662
7711
588
496
145
545
32
4,62
320
012,
469
245
918
570
4,20
219
327
557
376
612
295
274,
968
2002
2,67
816
898
661
44,
446
154
233
577
731
155
8669
5,17
720
032,
532
294
1,20
481
54,
845
207
465
622
829
128
8543
5,67
420
042,
351
213
1,67
977
95,
022
181
492
875
1,05
630
124
754
6,07
8
2005
2,15
815
62,
246
919
5,47
910
234
475
485
627
522
748
6,33
520
062,
275
215
2,28
21,
042
5,81
488
292
724
812
246
207
396,
626
2007
1,97
122
71,
534
825
4,55
724
676
749
825
322
217
105
5,38
220
0891
414
825
573
1,39
094
5831
937
752
3418
1,76
720
091,
120
151
198
361,
505
332
2691
694
281
6714
2,44
7
U.S
. Cor
pora
te U
nder
wri
tings
(Num
ber o
f Iss
ues)
Not
e: H
igh-
yield
deb
t is a
subs
et o
f str
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t cor
pora
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ce: Th
omso
n Re
uter
s (ht
tp://
thom
sonr
eute
rs.co
m/p
rodu
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serv
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/fina
ncia
l/fina
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l_pr
oduc
ts/d
eal_
mak
ing/
inve
stmen
t_ba
nkin
g/lea
gue_
tabl
es)
SECURITIESINDUSTRY
Securities Industry • 27
2006 2007 2008 2009
REVENUE:Commissions 26,665 28,846 30,166 25,575Trading Gain (Loss) 34,523 -10,334 -71,796 29,539Investment Account Gain (Loss) 3,307 3,184 -16 607Underwriting 20,884 23,182 16,463 20,062Margin Interest 20,777 29,179 16,748 3,574Mutual Fund Sales 7,844 8,050 6,676 4,998Asset Management Fees 18,195 21,588 20,899 16,532
Research 206 46 62 63Commodities 55 580 3,713 2,348Other - Securities Related 175,354 212,554 125,185 53,156Other - Securities Unrelated 23,526 35,174 29,968 31,618TOTAL REVENUE 331,336 352,048 178,068 188,072
EXPENSES:Total Compensation 71,104 69,610 59,794 68,079- Registered Rep. Compensation 26,874 27,394 24,390 24,017- Clerical Employee Compensation 41,664 40,435 33,569 35,728Total Floor Costs 6,444 7,439 7,594 7,549Communications Expense 4,919 5,328 5,333 4,866Occupancy & Equipment Costs 5,211 5,423 5,552 5,332Promotional Costs 1,541 1,532 1,255 839Interest Expense 198,804 249,788 114,533 19,518Error Account & Bad Debt Lossses 277 135 1,100 348Data Processing (EDP) Costs 2,926 2,953 2,649 2,269Regulatory Fees & Expenses 1,266 1,406 1,459 1,406Non-Recurring Charges 118 104 707 90Other Expenses 17,831 19,632 20,681 23,105TOTAL EXPENSES 310,442 363,351 220,655 126,638
PRE-TAX NET INCOME 20,894 -11,302 -42,587 61,434
TOTAL ASSETS 5,019,451 5,459,435 3,795,781 3,690,355TOTAL LIABILITIES 4,909,210 5,350,717 3,683,310 3,550,788TOTAL OWNERSHIP EQUITY 110,241 108,718 112,471 139,567
NUMBER OF FIRMS 204 195 194 206
Sources: NYSE Euronext
Financial Data of NYSE-Reporting Firms ($ Millions)
At the time of publication, total U.S. Broker Dealer data was not available as in previous Fact Book editions. We have provided 2009 data from the NYSE, where available, and will provide updated total U.S. data as soon as it is available in the research section of www.sifma.org
28
Securities Industry Employment*(In Thousands)
* Data prior to 1992 based on Standard Industrial Classification (SIC) Code 62; beginning 1992, data based on North American Industry Classification System (NAICS) code 523 (not strictly comparable to earlier years).
Sources: U.S. Department of Labor, Bureau of Labor Statistics; New York State Department of Labor (U.S. data - http://stats.bls.gov/ces/home.htm#data) (N.Y. data - http://www.labor.state.ny.us//labor_market/lmi_business/employ/menu.htm)
Annual% Chg.(U.S.)
NewYorkState
Annual% Chg.(NYS)
NYS% ofU.S.
NewYorkCity
Annual% Chg.(NYC)
NYC% ofNYS
YearEnd U.S.
1976 177.4 3.6 72.8 4.9 41.0 70.1 4.6 96.31977 183.4 3.4 73.3 0.7 40.0 70.2 0.1 95.81978 194.3 5.9 77.0 5.0 39.6 73.7 5.0 95.71979 214.2 10.2 82.1 6.6 38.3 78.4 6.4 95.51980 243.7 13.8 94.8 15.5 38.9 90.0 14.8 94.91981 267.0 9.6 105.0 10.8 39.3 99.6 10.7 94.91982 283.8 6.3 108.9 3.7 38.4 102.7 3.1 94.31983 328.3 15.7 125.0 14.8 38.1 117.5 14.4 94.01984 341.1 3.9 129.2 3.4 37.9 121.7 3.6 94.21985 367.5 7.7 137.6 6.5 37.4 130.0 6.8 94.5
1986 417.1 13.5 157.1 14.2 37.7 148.8 14.5 94.71987 456.3 9.4 172.7 9.9 37.8 163.0 9.5 94.41988 438.7 -3.9 160.3 -7.2 36.5 150.4 -7.7 93.81989 426.9 -2.7 154.1 -3.9 36.1 144.0 -4.3 93.41990 417.4 -2.2 161.3 4.7 38.6 151.1 4.9 93.71991 424.1 1.6 157.2 -2.5 37.1 146.6 -3.0 93.31992 485.9 14.6 157.2 12.7 32.4 145.7 12.4 92.71993 531.5 9.4 170.0 8.1 32.0 157.4 8.0 92.61994 560.2 5.4 178.0 4.7 31.8 165.0 4.8 92.71995 568.8 1.5 177.4 -0.3 31.2 163.0 -1.2 91.9
1996 608.3 6.9 179.3 1.1 29.5 164.9 1.2 92.01997 659.9 8.5 190.2 6.1 28.8 176.3 6.9 92.71998 711.0 7.7 196.7 3.4 27.7 182.1 3.3 92.61999 766.4 7.8 205.8 4.6 26.9 190.5 4.6 92.62000 836.9 9.2 216.7 5.3 25.9 200.3 5.1 92.42001 810.2 -3.2 184.1 -15.0 22.7 167.4 -16.4 90.92002 770.7 -4.9 181.7 -1.3 23.6 165.6 -1.1 91.12003 755.3 -2.0 178.6 -1.7 23.6 162.9 -1.6 91.22004 779.1 3.2 186.2 4.3 23.9 167.8 3.0 90.12005 797.5 2.4 194.1 4.2 24.3 173.9 3.6 89.62006 834.6 4.7 202.7 4.4 24.3 182.2 4.8 89.92007 857.3 2.7 210.6 3.9 24.6 189.0 3.7 89.72008 840.8 -1.9 200.5 -4.8 23.8 178.3 -5.7 88.92009 781.8 -7.0 182.1 -9.2 23.3 162.0 -9.1 89.0
Securities Industry • 29
FINRA Registered Representatives(Number of Individuals)
FINRA-Reporting Firms(Number of Firms)
Thousands
Source: Finra.org/newsroom.statistics/index.htm
4600
4800
5000
5200
5400
5600
5800
6000
'09'08 ‘07 ‘06 ‘05 ‘04 ‘03 ‘02 ‘01 ‘00‘99‘98‘97‘96‘95‘94‘93‘92‘91‘90
5,827
5,260
5,3865,292
5,451
5,5975,499
5,5795,482
5,592
5,029 5,0054,895
4,720
5,1115,191
5,272
5,3925,426
5,553
‘07 ‘08 ‘09‘06‘05‘04‘03‘02‘01‘00‘99‘98‘97‘96‘95‘94‘93‘92‘91‘900
100
200
300
400
500
600
700
800658 673 665 663659674 654
620556
486427417
656672 662589
535506464
406
30
Securities Industry Profitability (NYSE-Reporting Firms Doing a Public Business in the U.S.)
Total Pre-Tax Pre-Tax Pre-Tax Return Revenue Profits Profit Margin on Equity ($Mils.) ($Mils.) (%) (%)
1975 5,867 804 13.7 29.6 1976 6,884 979 14.2 32.4 1977 6,730 416 6.2 13.1 1978 8,832 684 7.7 20.7 1979 11,233 1,100 9.8 29.5 1980 16,030 2,262 14.1 49.2 1981 19,796 2,144 10.8 35.9 1982 23,210 3,035 13.1 40.5 1983 29,566 3,824 12.9 36.6 1984 31,216 1,608 5.2 13.3
1985 38,621 4,140 10.7 29.4 1986 50,082 5,512 11.0 28.6 1987 50,837 1,133 2.2 4.7 1988 51,829 2,492 4.8 9.6 1989 59,537 1,842 3.1 6.9 1990 54,034 -162 -0.3 -0.7 1991 60,718 5,849 9.6 23.7 1992 62,840 6,186 9.8 22.8 1993 73,182 8,600 11.8 27.1 1994 71,355 1,128 1.6 3.3
1995 96,303 7,405 7.7 20.9 1996 120,249 11,272 9.4 29.1 1997 145,004 12,209 8.4 27.9 1998 170,805 9,790 5.7 17.9 1999 183,367 16,270 8.9 25.6 2000 245,201 20,976 8.6 26.5 2001 194,766 10,411 5.3 12.2 2002 148,674 6,919 4.7 8.1 2003 144,516 16,750 11.6 19.4 2004 160,197 13,680 8.5 14.7
2005 228,819 9,446 4.1 9.6 2006 331,336 20,894 6.3 19.8 2007 352,048 -11,302 -3.2 -10.3 2008 178,068 -42,587 -23.9 -38.5 2009 188,072 61,434 32.7 48.7
Sources: NYSE Euronext
Securities Industry • 31
NYSE-Reporting Firms Equity Capital
NYSE-Reporting Firms Total Capital
$ Billions
$ Billions
Sources: NYSE Euronext
0
50
100
150
200
250
'09'08 ‘07 ‘06 ‘05 ‘04 ‘03 ‘02 ‘01 ‘00‘99‘98‘97‘96‘95‘94‘93‘92‘91‘90‘89‘88‘87‘86‘85‘84‘83‘82‘81‘80
7 8 11 14 22 3039 36 39
1736 39
5664
145149141121
106
157
9271
190174
207
5743
250 244253
0
20
40
60
80
100
120
140
'09'08 ‘06 ‘04 ‘02‘00‘98‘96‘94‘92‘90‘88‘86‘84‘82‘80
2835 33
2625 27 26 2312 13 17 21
38 39
5057
7184 87 83
9096 101
110
5 7 9
109 112
140
32
NYS
E-R
epor
ting
Firm
s’ In
com
e St
atem
ent
($ M
illio
ns,:
Reve
nues
and
Pro
fits)
Com
-m
issi
ons
Trad
ing
Gai
nIn
vest
men
tG
ain
Und
er-
wri
ting
Mar
gin
Inte
rest
Mut
ual
Fund
s
Ass
etM
gmt.
Fees
Res
earc
hC
om-
mod
ities
Oth
erSe
curi
ties
Rel
ated
Oth
erU
nrel
ated
Tota
lR
evs.
Pre-
Tax
Profi
ts
1985
8,23
89,
943
1,08
94,
250
2,57
81,
643
947
1898
37,
176
1,75
538
,621
4,14
019
8610
,473
12,5
611,
143
5,93
92,
920
2,80
11,
467
461,
065
9,55
22,
118
50,0
825,
512
1987
12,6
749,
965
146
5,16
13,
352
2,19
41,
797
241,
094
11,6
342,
796
50,8
371,
133
1988
8,79
011
,299
1,39
45,
158
3,02
81,
413
1,88
523
1,38
214
,693
2,76
251
,829
2,49
219
8910
,151
12,3
4348
84,
120
3,72
31,
580
2,22
627
1,40
820
,338
3,13
459
,537
1,84
2
1990
8,87
813
,175
-283
3,24
33,
075
1,66
92,
241
181,
686
17,3
892,
942
54,0
34-1
6219
9110
,589
16,1
0498
36,
073
2,63
22,
124
2,51
824
912
15,8
752,
884
60,7
185,
849
1992
11,5
8416
,342
452
7,47
82,
624
2,78
73,
052
221,
537
14,5
542,
409
62,8
406,
186
1993
13,7
0717
,873
600
10,0
613,
130
3,54
13,
469
2591
316
,868
2,99
573
,182
8,60
019
9413
,504
13,2
3510
35,
856
4,52
53,
192
3,87
532
1,95
420
,322
4,75
771
,355
1,12
8
1995
15,9
9817
,547
1,35
57,
799
6,23
93,
406
4,41
131
-448
36,5
943,
371
96,3
037,
405
1996
18,4
0018
.997
1,13
711
,165
7,12
04,
472
5,34
852
1,14
047
,076
5,34
212
0,24
911
,272
1997
21,3
3121
,236
1,79
312
,496
10,0
785,
412
7,15
058
-211
58,4
687,
194
145,
004
12,2
0919
9824
,188
19,7
031,
548
14,6
5112
,119
6,21
38,
995
55-1
,958
76,2
229,
069
170,
805
9,79
019
9929
,311
36,4
232,
379
16,0
2613
,416
6,66
311
,450
157
-8,7
2366
,719
9,54
718
3,36
716
,270
2000
33,6
8544
,715
1,84
717
,013
22,3
357,
745
15,8
7223
6-9
,662
99,6
1811
,798
245,
201
20,9
7620
0126
,825
24,9
1429
815
,631
12,8
446,
329
13,1
9718
44,
908
79,7
159,
923
194,
766
10,4
1120
0227
,569
13,6
5017
413
,179
5,99
25,
883
12,4
8515
64,
957
55,3
389,
290
148,
674
6,91
920
0325
,661
23,1
372,
116
15,0
904,
777
6,06
511
,762
170
-1,9
0247
,898
9,74
314
4,51
616
,750
2004
26,3
4017
,364
1,65
616
,659
6,14
66,
839
13,9
4220
893
059
,260
10,8
5416
0,19
713
,680
2005
25,6
1217
,007
1,55
917
,261
11,2
727,
163
15,2
6813
21,
053
111,
762
21,7
3022
9,81
99,
446
2006
26,6
6534
,523
3,30
720
,884
20,7
777,
844
18,1
9520
655
175,
354
23,5
2633
1,33
620
,894
2007
28,8
46-1
0,33
43,
184
23,1
8229
,179
8,05
021
,588
4658
021
2,55
435
,174
352,
048
-11,
302
2008
30,1
66-7
1,79
6-1
616
,463
16,7
486,
676
20,8
9962
3,71
312
5,18
529
,968
178,
068
-42,
587
2009
25,5
7529
,539
607
20,0
623,
574
4,99
816
,532
632,
348
53,1
5631
,618
188,
072
61,4
34
Sour
ces:
NYS
E Eu
rone
xt
Securities Industry • 33
Com
-m
issi
ons
Trad
ing
Gai
nIn
vest
men
tG
ain
Und
er-
wri
ting
Mar
gin
Inte
rest
Mut
ual
Fund
s
Ass
etM
gmt.
Fees
Res
earc
hC
om-
mod
ities
Oth
erSe
curi
ties
Rel
ated
Oth
erU
nrel
ated
Tota
lR
evs.
Pre-
Tax
Profi
ts
1985
8,23
89,
943
1,08
94,
250
2,57
81,
643
947
1898
37,
176
1,75
538
,621
4,14
019
8610
,473
12,5
611,
143
5,93
92,
920
2,80
11,
467
461,
065
9,55
22,
118
50,0
825,
512
1987
12,6
749,
965
146
5,16
13,
352
2,19
41,
797
241,
094
11,6
342,
796
50,8
371,
133
1988
8,79
011
,299
1,39
45,
158
3,02
81,
413
1,88
523
1,38
214
,693
2,76
251
,829
2,49
219
8910
,151
12,3
4348
84,
120
3,72
31,
580
2,22
627
1,40
820
,338
3,13
459
,537
1,84
2
1990
8,87
813
,175
-283
3,24
33,
075
1,66
92,
241
181,
686
17,3
892,
942
54,0
34-1
6219
9110
,589
16,1
0498
36,
073
2,63
22,
124
2,51
824
912
15,8
752,
884
60,7
185,
849
1992
11,5
8416
,342
452
7,47
82,
624
2,78
73,
052
221,
537
14,5
542,
409
62,8
406,
186
1993
13,7
0717
,873
600
10,0
613,
130
3,54
13,
469
2591
316
,868
2,99
573
,182
8,60
019
9413
,504
13,2
3510
35,
856
4,52
53,
192
3,87
532
1,95
420
,322
4,75
771
,355
1,12
8
1995
15,9
9817
,547
1,35
57,
799
6,23
93,
406
4,41
131
-448
36,5
943,
371
96,3
037,
405
1996
18,4
0018
.997
1,13
711
,165
7,12
04,
472
5,34
852
1,14
047
,076
5,34
212
0,24
911
,272
1997
21,3
3121
,236
1,79
312
,496
10,0
785,
412
7,15
058
-211
58,4
687,
194
145,
004
12,2
0919
9824
,188
19,7
031,
548
14,6
5112
,119
6,21
38,
995
55-1
,958
76,2
229,
069
170,
805
9,79
019
9929
,311
36,4
232,
379
16,0
2613
,416
6,66
311
,450
157
-8,7
2366
,719
9,54
718
3,36
716
,270
2000
33,6
8544
,715
1,84
717
,013
22,3
357,
745
15,8
7223
6-9
,662
99,6
1811
,798
245,
201
20,9
7620
0126
,825
24,9
1429
815
,631
12,8
446,
329
13,1
9718
44,
908
79,7
159,
923
194,
766
10,4
1120
0227
,569
13,6
5017
413
,179
5,99
25,
883
12,4
8515
64,
957
55,3
389,
290
148,
674
6,91
920
0325
,661
23,1
372,
116
15,0
904,
777
6,06
511
,762
170
-1,9
0247
,898
9,74
314
4,51
616
,750
2004
26,3
4017
,364
1,65
616
,659
6,14
66,
839
13,9
4220
893
059
,260
10,8
5416
0,19
713
,680
2005
25,6
1217
,007
1,55
917
,261
11,2
727,
163
15,2
6813
21,
053
111,
762
21,7
3022
9,81
99,
446
2006
26,6
6534
,523
3,30
720
,884
20,7
777,
844
18,1
9520
655
175,
354
23,5
2633
1,33
620
,894
2007
28,8
46-1
0,33
43,
184
23,1
8229
,179
8,05
021
,588
4658
021
2,55
435
,174
352,
048
-11,
302
2008
30,1
66-7
1,79
6-1
616
,463
16,7
486,
676
20,8
9962
3,71
312
5,18
529
,968
178,
068
-42,
587
2009
25,5
7529
,539
607
20,0
623,
574
4,99
816
,532
632,
348
53,1
5631
,618
188,
072
61,4
34
Sour
ces:
NYS
E Eu
rone
xt
Tota
l C
omp.
RR
C
omp.
*C
leri
cal
Com
p.*
Floo
r C
osts
Com
mu-
nica
tions
EDP
Occ
up
&
Equi
p.Pr
omo.
Inte
rest
Erro
r-B
ad
Deb
tR
eg.
Fees
-
Non
-R
ecur
. C
harg
esO
ther
Tota
l Ex
ps.
1985
14,5
736,
904
6,21
81,
310
1,92
247
81,
831
842
10,1
2826
624
599
2,78
834
,481
1986
19,4
059,
184
8,42
31,
698
2,28
863
22,
178
1,03
612
,425
432
310
714,
095
44,5
7119
8720
,558
9,33
39,
061
2,20
62,
550
762
2,72
51,
204
14,2
901,
138
326
105
3,83
949
,704
1988
18,7
397,
581
9,28
01,
756
2,54
973
73,
052
1,00
416
,308
438
372
564,
326
49,3
3719
8918
,826
7,53
99,
103
1,85
52,
374
711
3,16
395
524
,070
422
438
240
4,64
257
,695
1990
17,7
156,
868
8,78
91,
731
2,22
268
53,
092
878
22,7
1729
642
839
04,
042
54,1
9619
9120
,824
8,36
210
,179
1,76
02,
119
675
2,95
093
018
,871
399
415
465,
881
54,8
6819
9224
,162
9,88
811
,861
1,86
72,
282
830
3,00
91,
094
15,9
8341
448
197
6,43
556
,654
1993
28,9
6811
,884
14,2
122,
306
2,48
11,
071
3,13
61,
279
16,9
9529
245
971
7,52
364
,582
1994
27,3
4010
,900
13,5
682,
620
2,71
31,
206
3,17
01,
296
23,7
3137
340
063
7,31
470
,227
1995
30,3
0912
,538
14,5
632,
728
2,82
21,
270
3,40
11,
245
38,1
7528
448
111
18,
073
88,8
9919
9636
,768
14,7
8318
,279
3,10
33,
089
1,36
83,
632
1,55
349
,196
303
459
429,
465
108,
978
1997
41,6
6617
,283
20,2
863,
673
3,45
01,
590
3,93
41,
842
63,6
1438
855
567
211
,412
132,
796
1998
47,3
4420
,204
22,6
604,
345
4,17
71,
895
4,73
62,
117
83,0
0242
561
348
12,3
1216
1,01
5
1999
60,0
9823
,477
32,8
414,
896
4,59
22,
295
5,32
32,
408
70,3
4561
567
462
915
,222
167,
098
2000
68,9
5826
,783
37,5
145,
199
5,39
72,
699
6,62
63,
025
110,
513
824
849
971
19,1
6622
4,22
620
0160
,606
23,7
3232
,492
4,36
15,
330
2,81
77,
562
2,38
281
,602
630
976
147
17,9
4418
4,35
520
0253
,095
21,2
1128
,484
4,50
54,
499
2,45
96,
445
1,84
948
,440
468
906
716
18,3
7414
1,75
520
0354
,125
21,5
8929
,107
4,96
33,
953
2,31
36,
029
1,49
938
,184
305
980
252
15,1
6312
7,76
620
0457
,851
22,3
0232
,874
4,83
94,
171
2,42
35,
577
1,65
351
,084
275
1,15
047
717
,017
146,
517
2005
59,9
5323
,156
34,3
085,
234
4,34
42,
725
5,08
71,
512
121,
061
306
1,19
327
518
,684
220,
373
2006
71,1
0426
,874
41,6
646,
444
4,91
92,
926
5,21
11,
541
198,
804
277
1,26
611
817
,831
310,
442
2007
69,6
1027
,394
40,4
357,
439
5,32
82,
953
5,42
31,
532
249,
788
135
1,40
610
419
,632
363,
351
2008
59,7
9424
,390
33,5
697,
594
5,33
32,
649
5,55
21,
255
114,
533
1,10
01,
459
707
20,6
8122
0,65
520
0968
,079
24,0
1735
,728
7,54
94,
866
2,26
95,
332
839
19,5
1834
81,
406
9023
,105
126,
638
* Sub
set o
f tot
al co
mpe
nsat
ion
Sou
rces
: NYS
E Eu
rone
xt
NYS
E-R
epor
ting
Firm
s’ In
com
e St
atem
ent
($ M
illio
ns: E
xpen
ses)
34
Source: Thomson Reuters / Freeman & Co.Thomson Reuters (http://www.thomsonreuters.com/products_services/financial/financial_products/deal_making/investment_banking/league_tables)
U.S. Investment Banking Fee DataIn $ Billions
In Percent
0
5
10
15
20
25
30
35
40
45LOANDCMECMM&A
2001 2002 2003 2004 2005 2006 2007 2008 2009
$ Billion
Sour
ce: T
hom
sonR
uete
rs /
Free
man
& C
o.
8.36
6.86
2.79
11.47
4.03
2.60
7.96
5.01
2.71
10.27 13.77
6.39
3.76
18.79 20.60 12.59
6.07
6.86
5.15
6.74
4.48
5.81
4.11 2.73
6.45
7.21
7.94
2.85
7.55
10.3110.96
4.499.05
9.327.929.05
0
20
200920082007200620052004200320022001
40
60
80
100
LOANDCMECMM&APercent
Sour
ce: T
hom
sonR
uete
rs /
Free
man
& C
o.
33.4% 30.4% 37.3% 30.7%15.9% 26.8% 24.0% 23.1%
29.5%
25.4%
15.5%
20.1%
21.7%
20.6%16.4% 16.0%
21.8%
31.1%
30.9% 44.1% 31.8% 34.9% 48.9% 45.9% 48.0% 45.2% 28.2%
10.3% 10.0% 10.9% 12.7% 14.6% 10.9% 12.0% 9.8% 11.2%
Securities Industry • 35
Source: Thomson Reuters / Freeman & Co.Thomson Reuters (http://www.thomsonreuters.com/products_services/financial/financial_products/deal_making/investment_banking/league_tables)
Global Investment Banking Fee DataIn $ Billions
In Percent
0
20
40
60
80
100
120LOANDCMECMM&A
2001 2002 2003 2004 2005 2006 2007 2008 2009
$ Billion
Sour
ce: T
hom
sonR
uete
rs /
Free
man
& C
o.
21.08
12.27
5.23
28.66
11.29
13.12
5.03
20.16
10.68
16.45
5.75
24.69 33.93
14.45
16.40
8.09
46.17 54.64 38.71
13.92
11.86
21.90
21.84
13.13
19.15
24.78
11.10
14.71
8.94
10.387.66
22.51
25.19
17.57
6.84
14.70
0
20
40
60
80
100
LOANDCMECMM&APercent
Sour
ce: T
hom
sonR
uete
rs /
Free
man
& C
o.
27.6% 22.6% 31.0% 25.8%13.2% 24.5% 19.6%
16.4%24.4%
23.0%
19.4%
20.1%22.7%
21.6%
18.9%
19.6%19.3%
34.9%
39.6% 49.3% 38.0% 38.8% 49.9% 45.6% 49.0% 53.6% 31.2%
9.8% 8.7% 10.8% 12.7% 15.3% 11.0% 11.8% 10.6% 9.5%
200920082007200620052004200320022001
36
RevenuesCommissions — Commissions from all agency equity (including closed-end but excluding open-end mutual funds) and debt transactions including non-inventory principal (simultaneous riskless) transactions. Com-missions earned on introduced and omnibus accounts carried for other brokers are reported net.
Trading Gain (Loss) — Realized and unrealized gains and losses on securities held for sale in the ordinary course of business (net of dividends and interest earned on such securities but not reduced by floor costs or tax-es).
Investment Account Gain (Loss) — Realized and un-realized gains and losses on securities identified as held for investment (no adjustment for dividends and interest earned, which are reported in “other related” revenues, nor for interest paid, taxes or floor costs).
Underwriting Revenue — Gross profits and losses from management of and participation in underwriting syn-dicates and selling groups (sales price less purchase price adjusted for discounts, commissions and allowances paid or received). Direct expenses for specific under-writings are deducted but employee compensation and other expenses of the underwriting department are not deducted.
Margin Interest — Interest earned on customers’ secu-rities and commodities accounts.
Mutual Fund Sale Revenue — Income from sale of open-end investment company (mutual fund) securi-ties as a retailer or underwriter. Includes net amount of sales load and commissions from installment sales (but excludes commissions from closed-end funds which are reported in all other commissions).
Asset Management Fees — Total fees for account su-pervision, investment advisory and administrative ser-vices.
Research Revenue — Revenues from the sale of research services including income from the sale of research ad-vice, research reports, market letters, stock guides, port-folio analyses, and publications and consultations con-cerning investment advice.
Commodities Revenue — Income from commissions, fees, and principal trading in commodities (including futures and spot commodities contracts).
Other Revenue Related to the Securities Business — Includes, among other things, private placement fees, proxy solicitation fees, service charges (such as for merg-ers and acquisitions), fees for options done away from an exchange, dividends and interest from investment ac-counts (including repos and reverse repos), subscription fees for periodic publications (exclusive of research).
Other Revenue — All other revenue not related to bro-kers’ securities business.
ExpensesRegistered Representative Compensation — Total compensation to registered representatives (RRs defined here as individuals that spend 50% of their time effect-ing transactions with public customers) including: salary, commission or other basis.
Clerical Employee Compensation — All salaries, com-missions, bonuses, profit sharing, payroll taxes and ben-efits paid to or incurred for all employees other than RRs, voting stockholder officers and general partners.
Total Floor Costs — Includes all commissions (includ-ing commodity transaction payouts), floor brokerage and clearance paid to other brokers, and clearance fees paid to clearing corporations, associations and deposi-tories (FOCUS II-A brokers report all these fees on the “Commissions Paid to Broker-Dealers” line).
Communications Expense — Expenditures for tele-phone, telegraph, leased wires, tickers and projectors, quotation machines, NASDAQ, postage, stationary and office supplies.
Data Processing (EDP) Costs — Rental and depreciation of data processing equipment (other than service bureau).
Occupancy & Equipment Costs — Expenditures for rent, heat, light, maintenance, depreciation and amor-tization, equipment (other than EDP) rentals, repair to premises, janitorial services, cleaning expenses and gen-eral insurance.
Promotional Costs — General advertising and promo-tional expenses.
Interest Expense — All interest payments other than those credited to subordinated borrowings or general and limited partners’ capital.
Losses from Error Accounts & Bad Debts — Includes all losses in error accounts and bad debts.
Income Statement Definitions for Major NYSE Reporting Lines
MARKETACTIVITY
Market Activity • 39
Stock Market Capitalization($ Billions)
NYSE AMEX NASDAQ Total1980 1,242.8 82.9 122.4 1,448.11981 1,143.8 64.8 124.8 1,333.41982 1,305.4 61.7 153.1 1,520.21983 1,584.2 80.8 229.3 1,894.31984 1,586.1 69.8 207.0 1,862.9
1985 1,950.3 87.0 287.3 2,324.61986 2,199.3 95.8 340.9 2,636.01987 2,216.3 99.2 325.5 2,641.01988 2,457.5 111.0 338.7 2,907.21989 3,029.7 130.8 386.3 3,546.8
1990 2,819.8 102.3 310.8 3,232.91991 3,712.8 124.5 508.3 4,345.61992 4,035.1 109.4 615.1 4,759.61993 4,540.9 135.1 791.2 5,467.21994 4,448.3 109.9 786.5 5,344.6
1995 6,013.0 137.3 1,159.9 7,310.11996 7,300.4 135.1 1,517.1 8,952.51997 9,413.1 162.2 1,834.8 11,410.11998 10,864.5 152.3 2,588.8 13,605.51999 12,296.1 142.1 5,204.6 17,642.8
2000 12,372.3 124.9 3,597.1 16,094.32001 11,713.7 103.1 2,899.9 14,716.62002 9,603.3 98.5 1,997.6 11,699.42003 12,157.9 176.2 2,988.3 15,322.42004 13,728.4 405.0 3,742.7 17,876.1
2005 14,587.8 451.7 3,846.7 18,886.22006 16,934.3 570.0 4,130.0 21,634.32007 17,830.7 594.0 4,066.0 22,490.62008 10,177.8 n/a 2,538.0 12,715.82009 12,885.5 n/a 4,018.0 16,903.5
Sources: New York Stock Exchange, Inc.; The Nasdaq Stock Market, Inc.; American Stock Exchange LLC
40
Exchange Listed Companies(Number)
NYSE AMEX NASDAQ Total1980 1,570 892 2,894 5,3561981 1,565 867 3,353 5,7851982 1,526 822 3,264 5,6121983 1,550 822 3,901 6,2731984 1,543 791 4,097 6,4311985 1,541 782 4,136 6,4591986 1,575 796 4,417 6,7881987 1,647 866 4,706 7,2191988 1,681 896 4,451 7,0281989 1,720 860 4,293 6,873
1990 1,774 859 4,132 6,7651991 1,885 860 4,094 6,8391992 2,089 816 4,113 7,0181993 2,361 869 4,611 7,8411994 2,570 824 4,902 8,2961995 2,675 791 5,122 8,5881996 2,907 751 5,556 9,2141997 3,047 771 5,487 9,3051998 3,114 770 5,068 8,9521999 3,025 769 4,829 8,623
2000 2,862 765 4,734 8,3612001 2,798 691 4,109 7,5982002 2,783 698 3,663 6,9522003 2,755 700 3,333 6,6752004 2,768 725 3,271 6,7642005 2,767 812 3,208 6,7272006 2,764 821 3,247 6,8322007 2,805 812 3,158 6,7752008 3,507 644 2,954 7,1052009 3,517 n/a 2,852 6,369
Sources: New York Stock Exchange, Inc.; The Nasdaq Stock Market, Inc.; American Stock Exchange LLC
Market Activity • 41
Margin Credit at Broker-Dealers*
Annual Turnover Rate on New York Stock Exchange
$ Billions
Percent
0
50
100
150
200
250
300
'09'08 ‘06 ‘04 ‘02‘00‘98‘96‘94‘92‘90‘88‘86
37 32 33 34 2837
141
4460
229
199
6177
150134
97
126
204222
173
275
323
187
230
0
20
40
60
80
100
120
140
'09'08 ‘06 ‘04 ‘02‘00‘98‘96‘94‘92‘90‘88‘86
6473
55 5246 48 48
54 54
10594
8878
6369
76
59
105
118113
99
123129
138
*NYSE-reporting firms
42
New York Stock Exchange Activity
Reported Value of Average Share Shares Daily Volume Traded Volume (Mils.) ($ Mils.) (Mils.) 1970 2,937 95,263 11.6 1971 3,891 137,329 15.4 1972 4,138 149,967 16.5 1973 4,053 137,324 16.1 1974 3,518 92,129 13.9 1975 4,693 126,733 18.6 1976 5,360 159,765 21.2 1977 5,274 150,227 20.9 1978 7,205 199,880 28.6 1979 8,156 238,193 32.2
1980 11,352 374,909 44.9 1981 11,854 389,219 46.9 1982 16,458 488,396 65.1 1983 21,590 765,275 85.3 1984 23,071 764,738 91.2 1985 27,511 970,479 109.2 1986 35,680 1,374,350 141.0 1987 47,801 1,873,597 188.9 1988 40,850 1,356,050 161.5 1989 41,699 1,542,845 165.5
1990 39,665 1,325,332 156.8 1991 45,266 1,520,164 178.9 1992 51,376 1,745,466 202.3 1993 66,923 2,283,390 264.5 1994 73,420 2,454,242 291.4 1995 87,217 3,082,916 346.1 1996 104,636 4,063,655 412.0 1997 133,312 5,777,602 526.9 1998 169,745 7,317,949 673.6 1999 203,851 8,945,205 808.9
2000 262,478 11,060,046 1,041.6 2001 307,509 10,489,323 1,240.0 2002 363,136 10,311,156 1,441.0 2003 352,398 9,692,316 1,398.4 2004 367,098 11,618,151 1,456.7
2005 403,764 14,125,304 1,602.2 2006 453,291 17,140,500 1,826.7 2007 531,947 21,866,800 2,110.9 2008 660,168 20,855,441 2,609.4 2009 549,644 11,767,400 2,181.1
Source: New York Stock Exchange, Inc. (http://www.nyse.com/marketinfo/datalib/1022221393023.html)
Market Activity • 43
NASDAQ Activity
Value of Average Share Shares Daily Volume Traded Volume (Mils.) ($ Mils.) (Mils.)
1970 - - - 1971 n.a. n.a. n.a. 1972 2,220 n.a. 8.8 1973 1,682 30,507 6.7 1974 1,180 18,685 4.7 1975 1,390 21,213 5.5 1976 1,684 24,831 6.7 1977 1,932 24,666 7.6 1978 2,762 36,141 11.0 1979 3,651 44,300 14.4
1980 6,692 68,669 26.4 1981 7,823 71,057 30.9 1982 8,432 84,189 33.3 1983 15,909 188,285 62.9 1984 15,159 153,454 59.9 1985 20,699 233,454 82.1 1986 28,737 378,216 113.6 1987 37,890 499,855 149.8 1988 31,070 347,089 122.8 1989 33,530 431,381 133.1
1990 33,380 452,430 131.9 1991 41,311 693,852 163.3 1992 48,455 890,785 190.8 1993 66,540 1,350,100 263.0 1994 74,353 1,449,301 295.1 1995 101,158 2,398,214 401.4 1996 138,112 3,301,777 543.7 1997 163,882 4,481,691 647.8 1998 202,040 5,758,558 801.7 1999 272,605 11,013,192 1,081.8
2000 442,753 20,395,335 1,757.0 2001 471,217 10,934,572 1,900.1 2002 441,706 7,254,595 1,752.8 2003 424,745 7,057,440 1,685.5 2004 453,930 8,727,498 1,801.3
2005 448,175 9,965,442 1,778.5 2006 500,264 11,675,879 2,001.9 2007 537,263 15,115,541 2,132.0 2008 571,613 15,104,864 2,259.3 2009 560,637 10,458,851 2.224.8
Source: The Nasdaq Stock Market, Inc. (http://www.nasdaqtrader.com/trader/tradingdata/dailystats/dailystats.stm)
44
American Stock Exchange Activity
Value of Average Share Shares Daily Volume Traded Volume (Mils.) ($ Mils.) (Mils.)
1970 843 14,266 3.3 1971 1,071 18,606 4.2 1972 1,118 21,367 4.5 1973 760 10,848 3.0 1974 482 5,223 1.9 1975 541 5,678 2.1 1976 648 7,468 2.6 1977 653 8,532 2.6 1978 989 15,898 3.9 1979 1,100 22,194 4.3
1980 1,626 35,788 6.4 1981 1,343 24,520 5.3 1982 1,338 21,057 5.3 1983 2,081 31,237 8.2 1984 1,545 21,376 6.1 1985 2,101 27,839 8.3 1986 2,979 45,357 11.8 1987 3,506 50,470 13.9 1988 2,515 30,922 9.9 1989 3,125 44,402 12.4
1990 3,329 37,715 13.2 1991 3,367 40,919 13.3 1992 3,596 42,238 14.2 1993 4,582 56,737 18.1 1994 4,523 58,511 17.9 1995 5,072 72,717 20. 1996 5,628 91,330 22.2 1997 6,170 143,230 24.4 1998 7,280 287,929 28.9 1999 8,231 477,822 32.7
2000 13,318 945,391 52.9 2001 16,317 817,042 65.8 2002 16,063 642,183 63.7 2003 16,919 563,438 67.1 2004 16,513 884,100 65.5 2005 19,500 1,267,300 77.4 2006 44,515 2,364,800 177.3 2007 54,027 4,394,100 228.9 2008 146,202 6,817,600 459.3 2009 113,276 4,208,600 449.5
Source: American Stock Exchange LLC merged with ARCA on 10/1/08 (http://www.amex.com/atamex/aboutAmex/dailyStats/monthlystatistics.html)
Market Activity • 45
Municipal Treasury1 Agency MBS1Corporate
Debt2
Federal Agency
Securities1 Total3
1996 - 203.7 38.1 - 31.1 272.9
1997 - 212.1 47.1 - 40.2 299.4
1998 7.7 226.6 70.9 - 47.6 352.9
1999 8.3 186.5 67.1 - 54.5 316.5
2000 8.8 206.5 69.5 - 72.8 357.6
2001 8.8 297.9 112.0 - 90.2 508.9
2002 10.7 366.4 154.5 16.3 81.8 629.7
2003 12.6 433.5 206.0 18.0 81.7 751.8
2004 14.8 499.0 207.4 18.8 78.8 818.8
2005 16.9 554.5 251.8 16.7 78.8 918.7
2006 22.5 524.7 254.6 16.9 74.4 893.1
2007 25.1 570.2 320.1 16.4 83.0 1,014.8
2008 19.4 553.1 344.9 11.8 104.5 1,033.7
2009 12.5 407.9 299.9 16.8 77.7 814.8
1Primary dealer activity 2Excludes all issues with maturities of one year or less and convertible securities 3Totals may not add due to independent rounding
Sources: Federal Reserve Bank of New York, Municipal Securities Rulemaking Board, NASD TRACE
Average Daily Trading Volume in the U.S. Bond Markets($ Billions)
46
Millions of Shares
Average Daily Trading Volume in the U.S. Equirt Markets(On NYSE, NASDAQ, AMEX)
$ Billions
Daily Dollar Volume(On NYSE, NASDAQ, AMEX)
0
500
1000
1500
2000
2500
3000
3500
4000
4500
'09'08 ‘07 ‘06 ‘05 ‘04 ‘03 ‘02 ‘01 ‘00 ‘90 ‘80 ‘70
15
4,006
4,472
5,328
4,855
3,4583,3243,1513,2583,206
2,851
30278
0
20
40
60
80
100
120
140
160
'09'08 ‘07 ‘06 ‘05 ‘04 ‘03 ‘02 ‘01 ‘00 ‘90 ‘80 ‘70
0.4 1.9 7.2
128.6
89.7
72.3 68.7
100.6
84.2
124.2
164.2169.1
104.9
* Restated volume for AMEX/ARCA as a result of the acquisition of American Stock Exchange by NYSE Euronext on October 1, 2008
Market Activity • 47
Stock Market Indices (At Year-End)
Dow Jones Industrial S&P NYSE AMEX NASDAQ Average 500 Composite Composite* Composite
1970 838.92 92.15 531.12 49.21 - 1971 890.20 102.09 596.68 58.49 114.12 1972 1020.02 118.05 681.79 64.53 133.73 1973 850.86 97.55 547.93 45.17 92.19 1974 616.24 68.56 382.03 30.16 59.82 1975 852.41 90.19 503.73 41.74 77.62 1976 1004.65 107.46 612.01 54.92 97.88 1977 831.17 95.10 555.12 63.95 105.05 1978 805.01 96.11 566.96 75.28 117.98 1979 838.74 107.94 655.04 123.54 151.14
1980 963.99 135.76 823.27 174.50 202.34 1981 875.00 122.55 751.90 160.32 195.84 1982 1046.54 140.64 856.79 170.30 232.41 1983 1258.64 164.93 1006.41 223.01 278.60 1984 1211.57 167.24 1019.10 204.26 247.35 1985 1546.67 211.28 1285.66 246.13 324.93 1986 1895.95 242.17 1465.31 263.27 348.83 1987 1938.83 247.08 1461.61 260.35 330.47 1988 2168.57 277.72 1652.25 306.01 381.38 1989 2753.20 353.40 2062.30 378.00 454.82
1990 2633.66 330.22 1908.45 308.11 373.84 1991 3168.83 417.09 2426.04 395.05 586.34 1992 3301.11 435.71 2539.92 399.23 676.95 1993 3754.09 466.45 2739.44 477.15 776.80 1994 3834.44 459.27 2653.37 433.67 751.96 1995 5117.12 615.93 3484.15 550.00 1052.13 1996 6448.27 740.74 4148.07 572.34 1291.03 1997 7908.25 970.43 5405.19 684.61 1570.35 1998 9181.43 1229.23 6299.93 688.99 2192.69 1999 11497.12 1469.25 6876.10 876.97 4069.31
2000 10786.85 1320.28 6945.57 897.75 2470.52 2001 10021.50 1148.08 6236.39 847.61 1950.40 2002 8341.63 879.82 5000.00 824.38 1335.51 2003 10453.92 1111.92 6440.30 1173.55 2003.37 2004 10783.01 1211.92 7250.06 1434.34 2175.44 2005 10717.50 1248.29 7753.95 1759.08 2205.32 2006 12463.15 1418.30 9139.02 2056.43 2415.29 2007 13264.82 1468.36 9740.32 2409.62 2652.28 2008 8776.39 903.25 5757.05 1397.53 1577.03 2009 10428.05 1115.10 7184.96 1824.95 2269.15
*Amex Market Value Index through 1994; Amex Composite Index thereafter.
48
Stock Market Indices – Annual Percentage Change(In Percent)
Dow Jones Industrial S&P NYSE AMEX NASDAQ Average 500 Composite Composite* Composite
1970 4.8 0.1 -2.5 -18.0 — 1971 6.1 10.8 12.3 18.9 — 1972 14.6 15.6 14.3 10.3 17.2 1973 -16.6 -17.4 -19.6 -30.0 -31.1 1974 -27.6 -29.7 -30.3 -33.2 -35.1 1975 38.3 31.5 31.9 38.4 29.8 1976 17.9 19.1 21.5 31.6 26.1 1977 -17.3 -11.5 -9.3 16.4 7.3 1978 -3.1 1.1 2.1 17.7 12.3 1979 4.2 12.3 15.5 64.1 28.1
1980 14.9 25.8 25.7 41.2 33.9 1981 -9.2 -9.7 -8.7 -8.1 -3.2 1982 19.6 14.8 13.9 6.2 18.7 1983 20.3 17.3 17.5 31.0 19.9 1984 -3.7 1.4 1.3 -8.4 -11.2 1985 27.7 26.3 26.2 20.5 31.4 1986 22.6 14.6 14.0 7.0 7.4 1987 2.3 2.0 -0.3 -1.1 -5.3 1988 11.8 12.4 13.0 17.5 15.4 1989 27.0 27.3 24.8 23.5 19.3
1990 -4.3 -6.6 -7.5 -18.5 -17.8 1991 20.3 26.3 27.1 28.2 56.8 1992 4.2 4.5 4.7 1.1 15.5 1993 13.7 7.1 7.9 19.5 14.7 1994 2.1 -1.5 -3.1 -9.1 -3.2 1995 33.5 34.1 31.3 26.8 39.9 1996 26.0 20.3 19.1 4.1 22.7 1997 22.6 31.0 30.3 19.6 21.6 1998 16.1 26.7 16.6 0.6 39.6 1999 25.2 19.5 9.1 27.3 85.6
2000 -6.2 -10.1 1.0 2.4 -39.3 2001 -7.1 -13.0 -10.2 -5.6 -21.1 2002 -16.8 -23.4 -19.8 -2.7 -31.5 2003 25.3 26.4 28.8 42.4 50.0 2004 3.1 9.0 12.6 22.2 8.6 2005 -0.6 3.0 7.0 22.6 1.4 2006 16.3 13.6 17.9 16.9 9.5 2007 6.4 3.5 6.6 17.2 9.8 2008 -33.8 -38.5 -40.9 -42.0 -40.5 2009 18.8 23.5 24.8 30.6 43.9
* Amex Market Value Index through 1994; Amex Composite Index thereafter.
Market Activity • 49
Dow Jones Industrial Average
High Low Close
1970 842.00 631.16 838.92 1971 950.82 797.97 890.20 1972 1036.27 889.15 1020.02 1973 1051.70 788.31 850.86 1974 891.66 577.60 616.24 1975 881.81 632.04 852.41 1976 1014.79 858.71 1004.65 1977 999.75 800.85 831.17 1978 907.74 742.12 805.01 1979 897.61 796.67 838.74
1980 1000.17 759.13 963.99 1981 1024.05 824.01 875.00 1982 1070.55 776.92 1046.54 1983 1287.20 1027.04 1258.64 1984 1286.64 1086.57 1211.57 1985 1553.10 1184.96 1546.67 1986 1955.57 1502.29 1895.95 1987 2722.42 1738.74 1938.83 1988 2183.50 1879.14 2168.57 1989 2791.41 2144.64 2753.20
1990 2999.75 2365.10 2633.66 1991 3168.83 2470.30 3168.83 1992 3413.21 3136.58 3301.11 1993 3794.33 3241.95 3754.09 1994 3978.36 3593.35 3834.44 1995 5216.47 3832.08 5117.12 1996 6560.91 5032.94 6448.27 1997 8259.31 6391.69 7908.25 1998 9374.27 7539.07 9181.43 1999 11497.12 9120.67 11497.12
2000 11722.98 9796.03 10786.85 2001 11337.92 8235.81 10021.50 2002 10635.25 7286.27 8341.63 2003 10453.92 7524.06 10453.92 2004 10854.54 9749.99 10783.01 2005 10940.55 10012.36 10717.50 2006 12510.57 10667.39 12463.15 2007 14164.53 12050.41 13264.82 2008 13338.23 7392.27 8776.39 2009 10605.65 6440.08 10428.05
50
Compound Annual Rates of Return by Decade*(In Percent)
Large Small Long-Term Company Company Corporate Long-Term Intermediate Treasury Stocks Stocks Bonds Treasuries Treasuries Bills Inflation
1920s** 19.2 -4.5 5.2 5.0 4.2 3.7 -1.11930s -0.1 1.4 6.9 4.9 4.6 0.6 -2.01940s 9.2 20.7 2.7 3.2 1.8 0.4 5.41950s 19.4 16.9 1.0 -0.1 1.3 1.9 2.21960s 7.8 15.5 1.7 1.4 3.5 3.9 2.51970s 5.9 11.5 6.2 5.5 7.0 6.3 7.41980s 17.5 15.8 13.0 12.6 11.9 8.9 5.11990s 18.2 15.1 8.4 8.8 7.2 4.9 2.92000s*** -1.0 6.3 7.7 7.7 6.2 2.8 2.5
* Nominal.** Based on the period 1926-1929.*** Based on the period 2000-2009.
Source: Computed using data from Stocks, Bonds, Bills, and Inflation 2008 Yearbook, Ibbotson Associates, Chicago, a Morningstar subsidiary.
* Nominal.
Source: Computed using data from Stocks, Bonds, Bills, and Inflation 2007 Yearbook, Ibbotson Associates, Chicago, a Morningstar subsidiary.
Compound Annual Rates of Return* 1926 – 2009
0 24
68 10 12
Small Co. Stocks
Large Co. Stocks
Long-Term Corp. Bonds
Long-Term Treasuries
Intermed. Treasuries
Treasury Bills
11.9%
9.8%
3.7%
5.9%
5.4%
5.3%
Market Activity • 51
Mutual Funds Net New Cash Flow* ($ Billions)
Money Equity Hybrid Bond Market Total
1985 8.5 1.9 63.2 -5.4 68.2
1986 21.7 5.6 102.6 33.9 163.8
1987 19.0 4.0 6.8 10.2 40.0
1988 -16.1 -2.5 -4.5 0.1 -23.0
1989 5.8 4.2 -1.2 64.1 72.8
1990 12.8 2.2 6.2 23.2 44.4
1991 39.4 8.0 58.9 5.5 111.8
1992 78.9 21.8 71.0 -16.3 155.4
1993 129.4 39.4 73.3 -14.1 228.0
1994 118.9 20.9 -64.6 8.8 84.1
1995 127.6 5.3 -10.5 89.4 211.8
1996 216.9 12.3 2.8 89.4 321.3
1997 227.1 16.5 28.4 102.1 374.1
1998 157.0 10.2 74.6 235.3 477.1
1999 187.7 -12.4 -5.5 193.6 363.4
2000 309.4 -30.7 -49.8 159.6 388.6
2001 31.9 9.5 87.7 375.6 504.8
2002 -27.7 8.6 140.3 -46.7 74.5
2003 152.3 32.6 31.0 -258.5 -42.62004 177.9 42.7 -10.8 -156.6 53.2
2005 135.5 25.2 31.3 63.1 255.22006 160.1 7.1 60.6 247.5 475.2 2007 95.6 22.2 108.6 661.5 887.92008 -237.7 -21.7 33.0 631.7 405.22009 -11.0 22.0 374.9 -539.4 -153.5
* New sales (excluding reinvested dividends) minus redemptions, combined with net exchanges.
Source: Investment Company Institute (http://www.ici.org)
52
Mutual Fund Assets(Year -End , $ Billions)
Money Equity Hybrid Bond Market Total
1985 116.9 12.0 122.6 243.8 495.4
1986 161.4 18.8 243.3 292.1 715.7
1987 180.5 24.2 248.4 316.1 769.2
1988 194.7 21.1 255.7 338.0 809.4
1989 248.8 31.8 271.9 428.1 980.7
1990 239.5 36.1 291.3 498.3 1,065.2
1991 404.7 52.2 393.8 542.5 1,393.2
1992 514.1 78.0 504.2 546.2 1,642.5
1993 740.7 144.5 619.5 565.3 2,070.0
1994 852.8 164.5 527.1 611.0 2,155.4
1995 1,249.1 210.5 598.9 753.0 2,811.5
1996 1,726.1 252.9 645.4 901.8 3,526.3
1997 2,368.0 317.1 724.2 1,058.9 4,468.2
1998 2,978.2 364.7 830.6 1,351.7 5,525.2
1999 4,041.9 383.2 808.1 1,613.1 6,846.3
2000 3,962.0 346.3 811.1 1,845.2 6,964.7
2001 3,418.2 346.3 925.1 2,285.3 6,975.0
2002 2,667.0 327.4 1,124.9 2,272.0 6,391.3
2003 3,684.8 436.7 1,240.9 2,051.7 7,414.1
2004 4,384.0 519.3 1,290.4 1,913.2 8,106.9
2005 4,940.0 567.3 1,357.4 2,040.5 8,905.2
2006 5,911.4 653.1 1,494.3 2,354.8 10,413.6
2007 6,521.4 713.4 1,678.9 3,085.8 11,999.5
2008 3,708.1 494.2 1,567.2 3,832.3 9,601.8
2009 4,957.6 640.7 2,206.2 3,316.2 11,120.7
Source: Investment Company Institute (http//www.ici.org)
Market Activity • 53
Futures Contracts Traded on U.S. Exchanges(Number, in Millions)
Aggric. Non- Interest Com- Energy Foreign Equity Precious Precious Rate modities Products Currency Indexes Metals Metals Other Total
1980 12.5 59.1 0.2 4.2 * 13.2 1.8 1.0 92.1
1981 22.9 50.4 1.0 6.1 * 15.7 1.6 0.8 98.5
1982 28.8 46.3 1.9 8.7 4.9 18.8 2.4 0.6 112.4
1983 28.1 57.8 2.8 11.9 12.8 22.6 3.2 0.8 139.9
1984 41.2 48.9 4.6 14.0 18.4 18.9 2.6 0.8 149.4
1985 55.1 39.3 7.0 17.2 22.2 14.7 2.5 0.6 158.7
1986 70.2 38.3 12.9 19.4 26.5 14.7 1.9 0.6 184.4
1987 97.5 43.4 21.0 20.5 25.5 17.8 2.6 0.6 228.9
1988 102.6 60.5 27.1 22.2 14.3 16.5 2.1 0.6 245.9
1989 123.7 54.1 30.8 27.0 13.3 16.1 2.1 0.4 267.4
1990 123.4 57.1 35.4 28.9 14.8 14.8 1.9 0.3 276.5
1991 119.8 52.2 33.7 28.7 14.9 11.8 1.6 0.2 262.9
1992 153.3 51.2 37.8 26.6 14.7 9.8 1.7 0.3 295.3
1993 173.8 56.7 45.6 30.8 15.0 14.7 2.1 0.4 339.1
1994 248.7 58.7 49.7 29.7 20.6 15.7 2.7 0.4 426.3
1995 223.6 63.5 47.2 23.2 20.7 14.1 2.5 0.5 395.3
1996 212.5 74.9 47.2 22.6 22.2 14.9 2.3 0.8 397.4
1997 244.6 74.9 52.9 26.6 25.8 15.4 2.4 1.1 443.7
1998 279.2 73.3 63.8 27.0 42.4 13.8 2.5 1.2 503.2
1999 240.7 73.0 75.1 23.7 46.7 14.5 2.9 1.3 477.9
2000 248.7 73.2 73.1 19.4 62.8 10.2 2.8 1.3 491.5
2001 342.2 72.3 72.5 21.7 107.2 9.6 2.9 0.7 629.2
2002 418.8 79.2 92.1 23.5 221.5 12.4 2.9 1.0 851.3
2003 509.6 87.9 91.9 33.6 296.7 16.9 3.2 3.1 1,043.0
2004 704.2 101.8 109.5 51.1 330.0 21.3 3.3 2.9 1,324.0
2005 870.5 116.4 140.5 84.8 406.8 23.4 4.0 6.5 1,652.9
2006 1,034.6 157.5 190.9 114.0 500.4 34.3 3.3 1.1 2,043.9
2007 1,333.1 193.3 240.9 143.0 659.3 44.1 3.8 19.2 2,644.6
2008 1,213.1 215.4 285.9 155.8 904.9 56.2 4.6 13.0 2,852.5
2009 854.6 196.6 313.1 156.3 744.7 48.8 6.4 4.8 2,328.1
* Not yet traded.
Note: Single stock futures began trading on November 8, 2002
Source: Futures Industry Association (http://www.futuresindustry.org)
54
Number of Options Contracts Traded on U.S. Exchanges(Number, In Millions)
Individual Equity Foreign Interest Equities Indexes Currency Rate Futures Total
1980 96.7 * * * * 96.7
1981 109.4 * * * * 109.4
1982 137.3 * 0.0 0.0 0.2 137.5
1983 135.7 14.0 0.2 0.2 2.6 152.7
1984 118.9 75.8 1.5 0.3 9.9 206.4
1985 118.6 110.0 3.9 0.4 20.0 252.9
1986 141.9 138.5 8.5 0.3 31.8 321.0
1987 164.4 129.7 10.8 0.2 46.2 351.3
1988 114.9 71.0 9.9 0.1 49.1 245.0
1989 141.8 73.9 11.1 0.2 55.4 282.4
1990 111.4 88.3 10.1 0.1 64.1 274.0
1991 104.9 83.1 10.8 0.1 62.2 261.1
1992 106.5 83.3 12.2 0.1 69.2 271.3
1993 131.7 87.7 13.1 0.1 81.9 314.5
1994 149.9 121.1 10.1 0.2 100.9 382.2
1995 174.4 107.9 5.0 0.1 94.2 381.5
1996 198.6 92.4 3.2 0.1 102.0 396.2
1997 269.6 78.2 2.6 0.1 111.1 461.5
1998 325.8 74.8 1.8 0.1 127.5 530.0
1999 444.8 62.3 0.8 0.0 115.0 622.9
2000 665.3 53.3 0.5 0.0 103.1 822.2
2001 701.1 79.6 0.6 0.0 168.2 949.4
2002 679.4 100.6 0.4 0.0 213.1 993.6
2003 789.2 118.3 0.3 0.1 221.7 1,129.5
2004 1,032.4 149.3 0.2 0.1 289.2 1,471.2
2005 1,292.2 211.8 0.2 0.1 368.0 1,872.2
2006 1,717.7 310..0 0.1 0.2 501.5 2,529.4
2007 2,379.1 267.9 2.8 0.0 583.6 3,233.5
2008 3,284.8 292.2 5.6 0.0 518.9 4,101.5
2009 3,367.0 244.1 1.6 0.0 374.5 3,987.1
* Not yet traded; 0.0 = Less than 50,000
Sources: Options Clearing Corporation; Futures Industry Association (http://www.optionsclearing.com; http://www.futuresindustry.org)
Market Activity • 55
80 Years of Long-Term Municipal Bond Defaults
Defaults(1)
Total Issues Default RateDecade
1930 to 1939* 2,748 47,328 5.81%
1940 to 1949* 849 40,907 2.08%
1950 to 1959 112 61,789 0.18%
1960 to 1969 294 59,583 0.49%
1970 to 1979 202 44,143 0.46%
1980 to 1989 737 66,101 1.11%
1990 to 1999 1,176 122,319 0.96%
2000 to 2009 1,141 129,843 0.88%
(1) Defaults are when the bonds are not paid as described in the bond indenture.
* = a five year average of Defaults according to Bond Buyer 1935-1939 & 1940-1944
Sources: 1930 to 1939 “The Bond Buyer Distressed Debt Securities Newsletter” published by Income Securities Advisors Inc.
1940 to 1979 Advisory Commission on Intergovernmental Relations, Securities Data Company; The Bond Buyer; Bond Investoirs Association, James E. Spiotto, Chapman & Cutler, J.J. Kenny Co., Inc.
1980 to 2009, Thomson Reuters, “Distressed Debt Securities Newsletter” published by Income Securities Advisors Inc.
Advisory Commission on Intergovernmental Relations; Bond Investors Association; “Distressed Debt Securities Newsletter” published by Income Securities Advisors Inc.; J.J. Kenny Co., Inc.; James E. Spiotto, Chapman & Cutler; The Bond Buyer; Thomson Reuters.
0
1.0
2.0
3.0
4.0
5.0
6.0
2000s1990s1980s1970s1960s1950s1940s1930s
2.08%
1.11%
0.46%0.49%0.18%
111.20.96%
5.81%
0.88%
56
Long-Term Municipal Issuance
YearTotal
LT MuniUnique*
Issuer1980 4,963 3,724
1981 4,255 3,094
1982 6,011 4,059
1983 6,289 4,162
1984 6,576 4,409
1985 5,928 3,054
1986 7,699 5,458
1987 7,055 5,086
1988 8,162 5,718
1989 9,163 6,288
1990 8,762 6,053
1991 10,952 7,316
1992 13,006 8,470
1993 14,508 9,125
1994 11,280 7,311
1995 10,373 6,703
1996 12,162 7,635
1997 12,653 7,798
1998 15,408 9,365
1999 13,215 8,018
2000 11,260 6,898
2001 13,786 8,352
2002 14,398 8,799
2003 15,030 9,290
2004 13,603 8,456
2005 13,948 8,976
2006 12,742 8,123
2007 12,656 7,961
2008 10,686 6,884
2009 11,734 7,371
* Unique Issuer is the number of municipalities that come to market.
Source: Thomson Reuters Thomson Reuters (http://www.thomsonreuters.com/products_services/financial/financial_products/deal_making/investment_banking/league_tables)
Market Activity • 57
* Unique Issuer is the number of municipalities that come to market.
Bank Qualified Bonds
YearNumberof Deals
Dollar Amount$ Millions
Average Deal Size $ Millions
1986 20 52.0 2.6
1987 12 61.1 5.1
1988 300 1,384.9 4.6
1989 976 3,323.5 3.4
1990 3,543 9,733.3 2.7
1991 4,545 12,259.4 2.7
1992 5,107 14,324.6 2.8
1993 5,981 18,035.4 3.0
1994 4,902 13,501.7 2.8
1995 4,448 12,499.2 2.8
1996 5,221 14,547.7 2.8
1997 5,552 16,520.7 3.0
1998 6,762 23,110.2 3.4
1999 5,406 17,108.1 3.2
2000 4,385 13,323.6 3.0
2001 5,185 16,487.6 3.2
2002 4,969 15,998.0 3.2
2003 4,800 15,694.9 3.3
2004 4,963 16,487.6 3.3
2005 5,037 18,434.1 3.7
2006 4,692 17,271.8 3.7
2007 4,425 16,160.2 3.7
2008 4,143 15,164.2 3.7
2009 5,969 32,817.8 5.5
Source: Thomson Reuters Thomson Reuters (http://www.thomsonreuters.com/products_services/financial/financial_products/deal_making/investment_banking/league_tables)
Tax Exempt Short Term & Long Term Municipale Bonds, under the Tax Reform Act of 1986 (265b).
58
Municipal Market Trades by Trade TypeRetail vs. Institutional
Average daily number of trades
Year Retail Percent Institutional Percent TOTAL
2004 743.8 4.6% 15422.4 95.4% 16,166.2
2005 758.3 3.7% 19,612.7 96.3% 20,371.0
2006 880.5 3.6% 23,347.0 96.4% 24,227.5
2007 967.8 3.6% 25,560.6 96.4% 26,528.3
2008 1,209.1 5.5% 20,584.0 94.5% 21,793.1
2009 1,107.2 7.4% 13,939.9 92.6% 15,047.1
Year Retail Percent Institutional Percent TOTAL
2004 22,108 75.0% 7,353 25.0% 29,461
2005 21,344 71.5% 8,510 28.5% 29,854
2006 23,597 69.9% 10,140 30.1% 33,737
2007 25,417 69.8% 11,020 30.2% 36,437
2008 32,854 75.7% 10,529 24.3% 43,383
2009 33,308 81.0% 7,807 19.0% 41,115
Source: Municipal Securties Rulemaking Board (MSRB)
Average daily par amount in $ millions
InvestorPartIcIPatIon
Investor Participation • 61
Investor Participation • 61
Households Institutions % of % of Total Value Total Value Total 1965 734.9 616.1 83.8 118.8 16.2 1966 660.4 548.3 83.0 112.1 17.0 1967 835.1 682.1 81.7 153.0 18.3 1968 996.1 815.3 81.8 180.8 18.2 1969 840.6 667.4 79.4 173.2 20.6 1970 831.2 650.2 78.2 181.0 21.8 1971 974.9 743.7 76.3 231.2 23.7 1972 1,203.3 921.4 76.6 281.9 23.4 1973 938.3 693.9 73.9 244.4 26.1 1974 632.5 445.0 70.4 187.5 29.6
1975 839.4 584.6 69.6 254.8 30.4 1976 1,034.2 739.5 71.5 294.7 28.5 1977 922.6 636.3 69.0 286.3 31.0 1978 969.6 645.9 66.6 323.7 33.4 1979 1,147.3 775.0 67.6 372.3 32.4 1980 1,494.9 1,010.4 67.6 484.5 32.4 1981 1,382.0 905.2 65.5 476.8 34.5 1982 1,562.5 966.3 61.8 596.2 38.2 1983 1,856.0 1,088.6 58.7 767.4 41.3 1984 1,789.2 1,008.7 56.4 780.5 43.6
1985 2,270.4 1,229.5 54.2 1,040.9 45.8 1986 2,682.2 1,494.0 55.7 1,188.2 44.3 1987 2,710.3 1,462.6 54.0 1,247.7 46.0 1988 3,075.6 1,756.7 57.1 1,318.9 42.9 1989 3,813.0 2,147.1 56.3 1,665.9 43.7 1990 3,531.3 1,960.2 55.5 1,571.1 44.5 1991 4,847.8 2,751.4 56.8 2,096.4 43.2 1992 5,422.0 3,074.0 56.7 2,348.0 43.3 1993 6,296.9 3,404.5 54.1 2,892.4 45.9 1994 6,317.5 3,249.0 51.4 3,068.5 48.6
1995 8,481.3 4,347.5 51.3 4,133.8 48.7 1996 10,279.6 5,112.5 49.7 5,167.1 50.3 1997 13,292.8 6,635.0 49.9 6,657.8 50.1 1998 15,547.3 7,481.1 48.1 8,066.2 51.9 1999 19,522.8 9,596.0 49.2 9,926.8 50.8 2000 17,627.0 8,090.7 45.9 9,536.3 54.1 2001 15,310.6 6,720.9 43.9 8,589.7 56.1 2002 11,900.5 4,536.2 38.1 7,364.3 61.9 2003 15,618.5 5,767.5 36.9 9,851.0 63.1 2004 18,947.2 7,495.9 39.6 11,451.3 60.4
2005 20,636.1 7,993.0 38.7 12,643.1 61.3 2006 24,339.3 9,493.5 39.0 14,845.8 61.0 2007 25,577.3 9,465.0 37.0 16,112.3 63.0 2008 15,785.5 5,881.0 37.3 9,904.5 62.7 2009 20,451.0 7,698.4 37.6 12,752.6 62.4
Note: Household sector includes nonprofit organizations. Source: Federal Reserve Flow of Funds Accounts (http://www.federalreserve.gov/releases/Z1/; Table L.213 Corporate Equities)
U.S. Holdings of Equities(Market value in $ Billions)
62 Investor Participation • 6362
Source: Office of Economic Analysis, U.S. Securities and Exchange Commission
Number of Public Customer Accounts at Broker-Dealers
0
10
20
30
40
50
60
70
80
90
100
110
120
1980 1985 19951990 2000 2005 2009
35.3
21.5
9.7
49.4
97.6
109.2 109.5
Year Accounts1980 9,739,5291981 12,253,7981982 15,137,4951983 18,305,8701984 22,516,2251985 21,518,0211986 29,621,0411987 32,285,1651988 35,342,4051989 37,361,5121990 35,288,4561991 37,700,4901992 43,064,5041993 46,325,5461994 46,007,7501995 49,399,8241996 53,258,1091997 61,431,2961998 70,743,7891999 81,671,9692000 97,562,0002001 102,754,4642002 103,733,2202003 102,379,0482004 109,347,7962005 109,246,6532006 111,564,8262007 110,308,9702008 109,133,9272009 109,509,056
Investor Participation • 63
Household Equity Ownership(Market value in $ Billions)
0
2000
4000
6000
8000
10,000
'09'05'00'95'90'85'80'75'70'65
0.60 0.7 0.61.0 1.2
2.0
4.3
8.17.7
8.0
Note: Household sector includes nonprofit organizations. Source: Federal Reserve Flow of Funds Accounts
U.S. Family Holdings of Stock
1998 2001 2004 2007Percentage of Families having stock holdings, direct or indirect (%) 48.9 52.2 50.2 51.1
Median value of stock holdings among families with with holdings ($000*) 31.8 40.4 35.7 35.0
Stock holdings as a percentage of total financial assets (%) 54.0 56.1 51.3 53.3
Note: Indirect holdings are those in pooled investment trusts, retirement accounts, and other managed assets.
* 2007 dollars
Source: Survey of Consumer Finances 2009. www.federalreserve.pubs/bulletin/2009/pdf/scf09.pdf
64 Investor Participation • 6564
U.S. Household Liquid Financial Assets*
41.3
SecuritiesProducts
49%
BankDeposits
51%
41.3
SecuritiesProducts73.3%
BankDeposits26.7%
1975 $1.8 Trillion
2009 $23.9 Trillion
Note: Households include nonprofit organizations. Liquid financial assets exclude such illiquid assets as pension fund reserves, equity in non-corporate business, etc.Source: Federal Reserve Flow of Funds Accounts (http://www.federalreserve.gov/releases/Z1/; Table L.100 Households & Nonprofit Organizations)
Investor Participation • 65
U.S. Household Liquid Financial Assets (Market value in $ Billions)
Total Bank Mutual U.S. Money Liquid Deposits Fund Gov’t Muni. Market Corp. Financial Equities & CDs Shares Secs. Bonds Funds Bonds Assets
1980 1,010 1,466 52 193 131 64 42 2,958 1981 905 1,577 53 184 161 155 39 3,073 1982 966 1,701 65 200 202 188 36 3,359 1983 1,089 1,907 98 249 248 155 38 3,782 1984 1,009 2,145 118 310 291 199 39 4,110
1985 1,229 2,294 214 312 396 205 97 4,747 1986 1,494 2,497 379 301 412 243 140 5,467 1987 1,463 2,623 425 343 517 265 162 5,795 1988 1,757 2,799 439 452 590 283 156 6,476 1989 2,147 2,879 513 476 621 361 212 7,210
1990 1,960 2,899 512 627 656 392 272 7,318 1991 2,751 2,872 651 657 704 410 330 8,374 1992 3,074 2,873 817 745 675 368 337 8,889 1993 3,404 2,808 1,127 735 644 367 383 9,469 1994 3,249 2,749 1,138 1,051 597 377 404 9,565
1995 4,347 2,835 1,344 1,033 537 478 527 11,101 1996 5,112 2,914 1,705 1,193 498 534 581 12,538 1997 6,635 3,007 2,150 1,147 504 610 559 14,611 1998 7,481 3,113 2,611 1,165 506 707 627 16,210 1999 9,596 3,174 3,226 1,329 536 816 491 19,167
2000 8,091 3,304 3,041 1,127 539 960 518 17,581 2001 6,721 3,598 2,835 869 589 1,113 494 16,218 2002 4,536 4,002 2,421 533 679 1,070 737 13,977 2003 5,768 4,316 2,904 894 704 960 1,108 16,653 2004 7,496 4,781 3,417 941 742 904 1,145 19,427
2005 7,993 5,146 3,839 996 821 949 1,300 21,044 2006 9,494 5,590 4,388 836 872 1,115 1,523 23,816 2007 9,465 5,999 4,832 940 897 1,347 2,011 25,490 2008 5,881 6,261 3,445 965 937 1,580 1,988 21,057 2009 7,698 6,381 4,417 830 998 1,320 2,236 23,880
Note: Households include nonprofit organizations. Liquid financial assets exclude such illiquid assets as pension fund reserves, equity in non-corporate business.
Source: Federal Reserve Flow of Funds Accounts (http://www.federalreserve.gov/releases/Z1/; Table L.100 Households & Nonprofit Organizations)
66 Investor Participation • 6766
U.S. Household Liquid Financial Assets (In Percent)
Total Bank Mutual U.S. Money Liquid Deposits Fund Gov’t Muni. Market Corp. Financial Equities & CDs Shares Secs. Bonds Funds Bonds Assets
1980 34.2 49.6 1.8 6.5 4.4 2.2 1.4 100.0 1981 29.5 51.3 1.7 6.0 5.2 5.0 1.3 100.0 1982 28.8 50.6 1.9 6.0 6.0 5.6 1.1 100.0 1983 28.8 50.4 2.6 6.6 6.5 4.1 1.0 100.0 1984 24.5 52.2 2.9 7.5 7.1 4.8 0.9 100.0
1985 25.9 48.3 4.5 6.6 8.3 4.3 2.0 100.0 1986 27.3 45.7 6.9 5.5 7.5 4.5 2.6 100.0 1987 25.2 45.3 7.3 5.9 8.9 4.6 2.8 100.0 1988 27.1 43.2 6.8 7.0 9.1 4.4 2.4 100.0 1989 29.8 39.9 7.1 6.6 8.6 5.0 2.9 100.0
1990 26.8 39.6 7.0 8.6 9.0 5.4 3.7 100.0 1991 32.9 34.3 7.8 7.8 8.4 4.9 3.9 100.0 1992 34.6 32.3 9.2 8.4 7.6 4.1 3.8 100.0 1993 36.0 29.7 11.9 7.8 6.8 3.9 4.0 100.0 1994 34.0 28.7 11.9 11.0 6.2 3.9 4.2 100.0 1995 39.2 25.5 12.1 9.3 4.8 4.3 4.7 100.0 1996 40.8 23.2 13.6 9.5 4.0 4.3 4.6 100.0 1997 45.4 20.6 14.7 7.9 3.4 4.2 3.8 100.0 1998 46.2 19.2 16.1 7.2 3.1 4.4 3.9 100.0 1999 50.1 16.6 16.8 6.9 2.8 4.3 2.6 100.0
2000 46.0 18.8 17.3 6.4 3.1 5.5 2.9 100.0 2001 41.4 22.2 17.5 5.4 3.6 6.9 3.0 100.0 2002 32.5 28.6 17.3 3.8 4.9 7.7 5.3 100.0 2003 34.6 25.9 17.4 5.4 4.2 5.8 6.7 100.0 2004 38.6 24.6 17.6 4.8 3.8 4.7 5.9 100.0 2005 38.0 24.5 18.2 4.7 3.9 4.5 6.2 100.0 2006 39.9 23.5 18.4 3.5 3.7 4.7 6.4 100.0 2007 37.1 23.5 19.0 3.7 3.5 5.3 7.9 100.0 2008 27.9 29.7 16.4 4.6 4.4 7.5 9.4 100.0 2009 32.2 26.7 18.5 3.5 4.2 5.5 9.4 100.0
Note: Households include nonprofit organizations. Liquid financial assets exclude illiquid assets as pension fund reserves, equity in non-corporate business.
Source: Federal Reserve Flow of Funds Accounts (http://www.federalreserve.gov/releases/Z1/; Table L.100 Households & Nonprofit Organizations)
Investor Participation • 67
U.S
. Hol
ding
s of E
quiti
es O
utst
andi
ng b
y In
vest
or T
ype
(Mar
ket v
alue
in $
Bill
ions
)
19
9719
9819
9920
0020
0120
0220
0320
0420
0520
0620
0720
0820
09
tota
L13
,293
15,5
4719
,523
17,6
2715
,311
11,9
0115
,618
.518
,947
.220
,636
.124
,339
.325
,577
.315
,785
.520
,451
.0
Hou
seho
lds
6,63
57,
481
9,59
68,
091
6,72
14,
536
5,76
7.5
7,49
5.9
7,99
3.0
9,49
3.5
9,46
5.0
5,88
1.0
7,69
8.4
Inst
itutio
ns6,
658
8,06
69,
927
9,53
68,
590
7,36
49,
851.
011
,451
.312
,643
.114
,845
.816
,112
.39,
904.
512
,752
.6
Mut
ual F
unds
2,01
92,
506
3,37
73,
227
2,83
62,
187
3,05
1.3
3,69
3.6
4,17
5.7
4,98
9.6
5,47
6.9
3,01
4.1
4,17
2.2
Fore
ign
953
1,25
01,
612
1,64
31,
573
1,33
61,
674.
61,
904.
62,
039.
12,
448.
12,
812.
21,
775.
72,
454.
6st
ate
& L
ocal
Gov
’t re
tirem
ent
Fund
s1,
051
1,18
81,
408
1,29
91,
260
1,05
71,
421.
51,
600.
91,
715.
81,
926.
31,
985.
91,
211.
81,
526.
3
Priv
ate
Pens
ion
Fund
s1,
667
1,94
82,
081
1,91
51,
562
1,55
92,
096.
62,
333.
52,
541.
72,
874.
82,
863.
31,
664.
71,
945.
7Li
fe In
sura
nce
com
pani
es54
068
390
989
281
170
991
9.3
1,05
3.9
1,16
1.8
1,36
4.8
1,46
4.6
1,00
1.7
1,14
2.4
exch
ange
-tra
ded
Fund
s7
1634
6683
9814
6.3
219.
028
5.8
402.
057
3.7
473.
966
9.9
oth
er In
sura
nce
com
pani
es18
620
020
819
417
415
217
8.4
196.
619
9.5
227.
023
6.2
193.
323
1.7
Brok
er/D
eale
rs52
5467
7785
7510
0.5
129.
115
8.3
186.
422
4.8
109.
212
1.5
Fede
ral G
ov’t
retir
emen
t Fun
ds30
4357
5749
4679
.999
.211
2.6
138.
114
9.1
85.6
119.
4c
lose
d-en
d Fu
nds
5048
4137
3134
53.0
82.3
105.
612
2.5
146.
275
.792
.6st
ate
& L
ocal
Gov
ernm
ents
7899
9994
8880
84.7
90.0
96.8
106.
011
2.7
80.7
108.
4sa
ving
s Ins
titut
ions
2325
2424
2829
30.4
28.2
26.2
24.9
25.3
22.7
22.2
com
mer
cial
Ban
ks3
711
129
415
.020
.324
.135
.341
.56.
730
.4
Not
e: H
ouse
hold
s inc
lude
non
profi
t org
aniz
atio
ns.
Sour
ce: F
eder
al R
eser
ve F
low
of F
unds
Acc
ount
s (ht
tp://
ww
w.fe
dera
lrese
rve.g
ov/r
eleas
es/Z
1/; T
able
L.21
3 Co
rpor
ate E
quiti
es)
68 Investor Participation • 6968
U.S
. Hol
ding
s of E
quiti
es b
y In
vest
or T
ype
(In
Perc
ent)
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Hou
seho
lds
49.9
48.1
49.2
45.9
43.9
38.1
36.9
39.6
38.7
39.0
37.0
37.3
37.6
Inst
itutio
ns50
.151
.950
.854
.156
.161
.963
.160
.461
.361
.063
.062
.762
.4
Mut
ual F
unds
15.2
16.1
17.3
18.3
18.5
18.4
19.5
19.5
20.2
20.5
21.4
19.1
20.4
Fore
ign
7.2
8.0
8.3
9.3
10.3
11.2
10.7
10.1
9.9
10.1
11.0
11.2
12.0
stat
e &
Loc
al G
ov’t
retir
emen
t Fun
ds7.
97.
67.
27.
48.
28.
99.
18.
48.
37.
97.
87.
77.
5Pr
ivat
e Pe
nsio
n Fu
nds
12.5
12.5
10.7
10.9
10.2
13.1
13.4
12.3
12.3
11.8
11.2
10.5
9.5
Life
Insu
ranc
e c
ompa
nies
4.1
4.4
4.7
5.1
5.3
6.0
5.9
5.6
5.6
5.6
5.7
6.3
5.6
exch
ange
-tra
ded
Fund
s0.
10.
10.
20.
40.
50.
80.
91.
21.
41.
72.
23.
03.
3o
ther
Insu
ranc
e c
ompa
nies
1.4
1.3
1.1
1.1
1.1
1.3
1.1
1.0
1.0
0.9
0.9
1.2
1.1
Brok
er/D
eale
rs0.
40.
30.
30.
40.
60.
60.
60.
70.
80.
80.
90.
70.
6Fe
dera
l Gov
’t re
tirem
ent F
unds
0.2
0.3
0.3
0.3
0.3
0.4
0.5
0.5
0.5
0.6
0.6
0.5
0.6
clo
sed-
end
Fund
s0.
40.
30.
20.
20.
20.
30.
30.
40.
50.
50.
60.
50.
5st
ate
& L
ocal
Gov
ernm
ents
0.6
0.6
0.5
0.5
0.6
0.7
0.5
0.5
0.5
0.4
0.4
0.5
0.5
savi
ngs I
nstit
utio
ns0.
20.
20.
10.
10.
20.
20.
20.
10.
10.
10.
10.
10.
1c
omm
erci
al B
anks
0.0
0.0
0.1
0.1
0.1
0.0
0.1
0.1
0.1
0.1
0.2
0.04
0.1
Not
e: H
ouse
hold
s inc
lude
non
profi
t org
aniz
atio
ns.
Sour
ce: F
eder
al R
eser
ve F
low
of F
unds
Acc
ount
s (ht
tp://
ww
w.fe
dera
lrese
rve.g
ov/r
eleas
es/Z
1/; T
able
L.21
3 Co
rpor
ate E
quiti
es)
Investor Participation • 69
Net
Acq
uisi
tions
of C
orpo
rate
Equ
ities
($ B
illio
ns)
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
net
IssU
an
ce
-46.
4-1
13.3
1.5
5.3
98.3
46.4
138.
978
.8-7
6.6
-368
.7-4
60.5
308.
932
7.0
Hou
seho
lds
-240
.2-3
03.6
-85.
9-4
86.6
-241
.9-1
45.4
-86.
0-2
58.2
-414
.9-6
65.9
-805
.911
2.5
126.
9In
stitu
tions
193.
819
0.3
87.4
491.
934
0.2
191.
822
4.9
337.
033
8.3
297.
234
5.4
196.
420
0.1
Mut
ual F
unds
166.
814
3.3
136.
419
3.1
109.
831
.413
6.8
158.
512
9.6
131.
391
.3-3
8.1
85.5
Fore
ign
67.0
42.0
112.
319
3.6
121.
554
.134
.025
.056
.996
.221
8.5
91.2
122.
8st
ate
& L
ocal
Gov
ernm
ents
16.8
-8.8
-21.
36.
34.
010
.3-1
7.0
-4.2
2.5
-4.4
7.1
17.6
13.9
Priv
ate
Pens
ion
Fund
s-1
42.2
-30.
5-2
60.2
-82.
7-1
29.8
-69.
5-2
4.1
11.2
-4.6
-72.
3-2
17-2
56.7
-159
.0Li
fe In
sura
nce
com
pani
es72
.082
.511
6.9
111.
370
.252
.745
.551
.565
.971
.484
.181
.821
.1ex
chan
ge-t
rade
d Fu
nds
3.4
6.0
12.2
42.4
31.0
41.6
15.1
52.6
50.0
68.3
137.
215
4.2
70.5
oth
er In
sura
nce
com
pani
es3.
0-5
.0-1
.70.
7-0
.3-1
.1-3
.4-3
.9-6
.12.
30.
535
.10.
4Br
oker
/Dea
lers
2.4
-6.0
7.7
9.6
17.3
3.2
4.1
15.2
20.1
-0.2
25.4
-28.
5-7
.3Fe
dera
l Gov
’t re
tirem
ent F
unds
4.4
4.0
4.4
5.2
-0.6
8.2
17.5
9.1
7.0
6.3
2.7
-8.6
8.7
clo
sed-
end
Fund
s-1
0.0
-11.
8-1
4.5
0.1
-1.3
9.4
8.3
21.7
18.5
2.2
18.7
-17.
9-3
.3st
ate
& L
ocal
Gov
’t re
tirem
ent F
unds
9.4
-28.
2-6
.211
.611
5.1
50.2
35.4
1.9
-5.6
-73.
0-3
5.3
-6.7
-8.2
savi
ngs I
nstit
utio
ns0.
21.
5-0
.70.
43.
22.
0-1
.0-1
.1-1
.0-1
.0-0
.1-1
.5-0
.5c
omm
erci
al B
anks
0.6
1.3
2.0
0.3
0.2
-0.6
2.4
-0.3
0.1
0.7
1.6
2.4
6.9
Not
e: H
ouse
hold
s inc
lude
non
profi
t org
aniz
atio
ns.
Sour
ce: F
eder
al R
eser
ve F
low
of F
unds
Acc
ount
s (ht
tp://
ww
w.fe
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lrese
rve.g
ov/r
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es/Z
1/; T
able
F.21
3 Co
rpor
ate E
quiti
es)
GlobalMarkets
Global Markets • 73
Global Markets • 73
2006 2007 2008 2009200520042003200220010
50
100
150
200
250
300
206.2
251.0 250.3 259.1
173.4158.6
134.3112.6107.3
$ trillions
Global Capital Markets
GLOBAL CApitAL MArkets($ trillions)
2002 2003 2004 2005 2006 2007 2008 2009equity Markets Capitalization 23.5 32.0 38.2 43.3 53.4 64.6 34.9 48.7Debt securities outstanding 42.2 50.0 57.1 58.8 67.6 78.5 83.0 91.2Derivatives Market Value 7.2 8.3 11.0 10.8 11.1 17.6 36.0 23.7securities Industry total 73.0 90.4 106.2 112.9 132.0 160.7 153.8 163.6Commerical bank assets 39.6 43.9 52.4 60.5 74.2 90.3 96.4 95.5Financial Markets* total 112.6 134.3 158.6 173.4 206.2 251.0 250.2 259.1
*excludes insurance
Sources: Standard and Poor's Global Stock Markets Factbook, Bank of International Settlements (BIS)
74 Global Markets • 75
Global equity Market Capitalization(Year end)
41.3
U.S.33%
UK9%
Other Developed Markets27%
Emerging Markets6%
Japan31%
41.3
U.S.31%
UK5.7%
Other Developed
Markets28.1%
Emerging Markets28.3%
Japan6.9%
1990$9.4 Trillion
Source: Standard and Poor's Global Stockmarket Factbook
2009$48.7 Trillion
Global Markets • 75
Global Bond Market Outstandings(Year end)
41.3
U.S.44.7%
UK2.9%
Other Developed Markets33.7%
Emerging Markets2.3%
Japan16.4%
41.3
U.S.34.8%
UK5.2%
Other Developed Markets44.3%
Emerging Markets2.6%
Japan13.1%
1990$17.3 Trillion
2009$91.2 Trillion
Source: Bank of International Settlement (BIS)
76 Global Markets • 77
international security Offerings($ billions)
straight Conv. total Common pref. total Debt Debt Debt stock stock equity total
1990 222.3 10.2 233.5 7.9 0.3 8.2 241.7 1991 279.7 9.9 289.5 11.7 0.9 12.6 302.2 1992 302.8 6.1 308.8 12.3 1.4 13.7 322.6 1993 425.3 17.7 443.1 18.7 0.9 19.6 462.7 1994 379.7 19.0 398.7 25.1 0.9 26.0 424.7 1995 410.3 9.8 420.1 22.2 1.0 23.2 443.3 1996 536.6 20.9 557.5 38.5 6.6 45.1 602.6 1997 537.1 17.8 554.9 59.8 3.9 63.7 618.6 1998 664.5 31.9 696.4 64.2 4.8 69.0 765.4 1999 1,104.1 31.5 1,135.5 95.5 7.5 103.0 1,238.5
2000 841.9 41.0 883.0 194.4 13.7 208.1 1,091.1 2001 1,000.7 58.0 1,058.7 82.1 10.7 92.8 1,151.4 2002 1,027.4 35.3 1,062.7 53.0 3.1 56.0 1,118.8 2003 1,612.8 66.5 1,679.3 57.9 8.2 66.1 1,745.4 2004 2,000.7 50.1 2,050.8 145.3 2.7 148.0 2,198.8 2005 2,319.0 28.3 2,347.3 118.1 4.7 122.7 2,470.1 2006 3,318.8 47.6 3,366.4 214.5 13.1 227.7 3,594.1 2007 3,298.8 83.2 3,382.0 421.1 14.1 435.2 3,817.2 2008 3,031.9 66.9 3,098.8 357.4 10.8 368.2 3,467.0 2009 3,401.1 56.3 3,457.4 494.2 13.8 508.0 3,965.4
international security Offerings (Number of Issues)
straight Conv. total Common pref. total Debt Debt Debt stock stock equity total
1990 1,902 134 2,036 121 3 124 2,160 1991 1,989 132 2,121 217 4 221 2,342 1992 1,950 62 2,012 265 7 272 2,284 1993 2,594 176 2,770 310 9 319 3,089 1994 2,900 198 3,098 310 11 321 3,419 1995 3,127 100 3,227 245 7 252 3,479 1996 3,633 172 3,805 367 17 384 4,189 1997 3,493 114 3,607 496 25 521 4,128 1998 3,446 122 3,568 528 23 551 4,119 1999 4,069 168 4,237 627 34 661 4,898
2000 3,570 108 3,678 1,367 30 1,397 5,075 2001 3,900 136 4,036 731 24 755 4,791 2002 4,228 118 4,346 479 9 488 4,834 2003 5,058 216 5,274 497 13 510 5,784 2004 5,596 277 5,873 679 6 685 6,558 2005 6,401 174 6,575 594 12 606 7,181 2006 8,267 241 8,508 1,112 32 1,144 9,652 2007 8,087 336 8,423 2,899 37 2,963 11,359 2008 5,577 151 5,728 1,727 48 1,775 7,503 2009 5,358 222 5,580 2,511 61 2,572 8,152
Source: Thomson Financial (http://thomsonreuters.com/products_services/financial/financial_products/deal_making/investment_banking/league_tables)
Global Markets • 77
international security Offerings by U.s. issuers($ billions)
straight Conv. total Common pref. total Debt Debt Debt stock stock equity total
1990 10.8 0.6 11.3 2.3 0.1 2.4 13.7 1991 18.7 1.2 19.9 5.0 0.9 5.9 25.8 1992 22.3 0.5 22.9 7.2 0.3 7.4 30.3 1993 33.4 1.1 34.6 9.3 0.1 9.4 43.9 1994 47.5 2.0 49.4 6.5 0.1 6.6 56.1 1995 64.3 1.9 66.2 6.7 0.1 6.7 72.9 1996 81.8 4.5 86.3 8.3 1.7 9.9 96.2 1997 99.7 2.3 102.0 8.4 1.4 9.8 111.8 1998 155.0 7.4 162.4 7.0 0.4 7.4 169.8 1999 270.5 1.0 271.5 9.3 0.9 10.1 281.6
2000 127.4 3.0 130.4 21.5 1.3 22.9 153.3 2001 94.5 2.0 96.5 7.9 0.0 7.9 104.4 2002 115.5 0.3 115.8 1.4 0.0 1.4 117.1 2003 153.5 0.0 153.5 0.7 2.4 3.1 156.5 2004 200.9 0.0 200.9 0.2 0.0 0.2 201.1 2005 192.6 0.6 193.2 0.9 0.0 0.9 194.1 2006 359.2 0.1 359.3 8.2 4.5 12.8 372.1 2007 365.5 0.9 366.4 6.3 2.4 8.6 375.1 2008 240.1 0.1 240.1 21.0 2.3 23.3 263.4 2009 257.5 0.4 257.9 2.4 1.0 3.4 261.3
international security Offerings by U.s. issuers(Number of Issues)
straight Conv. total Common pref. total Debt Debt Debt stock stock equity total
1990 78 5 83 77 1 78 161 1991 120 15 135 159 4 163 298 1992 117 7 124 191 3 194 318 1993 192 15 207 225 1 226 433 1994 336 11 347 146 3 149 496 1995 467 19 486 131 1 132 618 1996 521 29 550 170 6 176 726 1997 555 16 571 151 10 161 732 1998 654 12 666 94 2 96 762 1999 856 8 864 90 4 94 958
2000 490 5 495 391 2 393 888 2001 369 4 373 197 0 197 570 2002 382 1 383 83 0 83 466 2003 437 0 437 42 3 45 482 2004 545 1 546 21 0 21 567 2005 531 2 533 24 0 24 557 2006 890 3 893 26 8 34 927 2007 872 7 879 84 4 88 967 2008 624 5 629 72 6 78 707 2009 546 6 552 106 4 110 662
Source: Thomson Reuters (http://thomsonreuters.com/products_services/financial/financial_products/deal_making/investment_banking/league_tables)
78 Global Markets • 79
Foreign Gross Activity in U.s. securities($ billions)
Corporate stocks Bonds treasuries Agencies total
1980 75.1 8.5 97.4 16.9 197.9 1981 75.5 11.9 121.8 17.7 226.9 1982 79.9 21.8 174.6 20.6 296.9 1983 134.4 19.0 254.2 28.1 435.7 1984 124.3 34.0 450.7 32.5 641.5 1985 159.0 83.5 967.2 45.6 1,255.3 1986 277.5 128.2 2,064.6 67.2 2,537.5 1987 482.0 103.0 2,649.3 80.6 3,314.9 1988 364.1 87.7 3,083.7 56.1 3,591.6 1989 416.4 120.5 4,140.4 87.8 4,765.1
1990 361.4 117.3 3,620.3 104.3 4,203.3 1991 411.3 154.7 4,015.8 124.1 4,705.9 1992 448.0 186.0 4,443.2 204.1 5,281.3 1993 617.8 238.9 5,194.6 262.8 6,314.1 1994 699.3 222.1 5,343.5 296.9 6,561.8 1995 914.7 278.3 5,828.2 222.2 7,243.3 1996 1,168.9 421.9 7,133.6 240.5 8,964.9 1997 2,126.3 617.3 9,546.1 468.7 12,758.4 1998 3,097.4 640.6 10,259.3 992.0 14,989.2 1999 4,573.8 577.0 8,586.2 879.8 14,616.8
2000 7,035.5 774.8 7,795.1 1,305.0 16,910.4 2001 5,986.3 1,260.1 10,516.9 2,239.3 20,002.6 2002 6,369.3 1,459.2 14,409.0 3,260.8 25,498.3 2003 6,197.5 1,702.9 16,354.4 3,748.7 28,003.4 2004 8,083.3 2,021.5 17,578.9 2,187.5 29,871.2 2005 8,859.4 2,152.4 20,013.0 2,025.2 33,050.0 2006 13,657.3 2,834.2 21,714.4 2,853.6 41,059.5 2007 21,083.9 3,441.6 29,971.9 3,874.8 58,372.2 2008 23,940.5 2,840.6 28,939.0 5,215.6 60,935.7 2009 13,172.1 2,423.2 22,806.1 2,080.2 40,481.6
Note: Gross = purchases plus sales Source: SIFMA Foreign Activity Report (http://www.sifma.org/international/html/reports.html)
Global Markets • 79
Foreign Net purchases of U.s. securities($ billions)
Corporate stocks Bonds treasuries Agencies total
1980 5.4 2.9 4.9 2.6 15.8 1981 5.8 3.5 15.0 1.6 25.9 1982 4.0 1.8 17.3 -0.4 22.7 1983 5.4 10.9 5.4 0.0 21.7 1984 -2.9 11.9 21.4 1.2 31.6 1985 4.9 39.8 29.0 4.4 78.1 1986 18.7 43.5 24.3 6.9 93.4 1987 16.3 22.7 25.6 5.0 69.6 1988 -2.0 21.2 48.5 6.7 74.4 1989 9.6 17.3 54.2 15.1 96.2
1990 -15.3 9.7 17.9 6.3 18.6 1991 11.1 17.2 19.9 10.2 58.4 1992 -5.1 21.1 39.0 18.3 73.3 1993 21.6 30.6 23.6 35.4 111.2 1994 1.9 38.0 78.8 21.7 140.4 1995 11.2 57.9 134.1 28.7 231.9 1996 12.5 83.7 232.2 41.7 370.2 1997 69.6 84.3 184.2 49.9 388.0 1998 50.0 121.9 49.0 56.8 277.8 1999 107.5 160.4 -10.0 92.2 350.2
2000 174.9 184.1 -54.0 152.8 457.8 2001 116.4 221.9 18.5 165.1 521.9 2002 50.2 182.3 119.9 195.1 547.6 2003 37.9 268.9 273.9 165.2 745.9 2004 25.8 300.8 356.8 232.5 915.8 2005 79.1 391.7 350.8 226.8 1,048.5 2006 149.8 503.0 198.6 290.8 1,142.2 2007 195.5 383.1 201.1 226.1 1,005.8 2008 40.8 93.5 316.0 -37.8 412.5 2009 40.1 -13.4 226.7 0.6 254.1
Note: Net = purchases minus sales Source: SIFMA Foreign Activity Report (http://www.sifma.org/international/html/reports.html)
80 Global Markets • 81
U.s. Gross Activity in Foreign securities($ billions)
stocks Bonds total
1980 17.9 35.2 53.1 1981 18.8 40.6 59.4 1982 15.7 66.4 82.1 1983 30.3 76.0 106.3 1984 30.4 118.8 149.2 1985 45.6 166.4 212.0 1986 100.2 337.7 437.9 1987 189.4 405.9 595.3 1988 152.7 444.5 597.2 1989 232.7 474.5 707.2
1990 254.5 651.6 906.1 1991 273.2 675.5 948.7 1992 332.4 992.1 1,324.5 1993 553.7 1,572.3 2,126.0 1994 820.3 1,706.0 2,526.3 1995 741.4 1,827.5 2,568.9 1996 960.0 2,279.4 3,239.4 1997 1,553.0 2,951.6 4,504.6 1998 1,852.9 2,673.8 4,526.8 1999 2,339.0 1,602.2 3,941.2
2000 3,617.5 1,921.9 5,539.4 2001 2,845.4 2,287.9 5,133.3 2002 2,537.1 2,716.0 5,253.1 2003 2,747.3 3,097.1 5,844.4 2004 3,514.6 2,934.7 6,449.3 2005 4,495.3 3,020.4 7,515.7 2006 7,502.3 3,877.7 11,380.0 2007 10,520.8 6,052.2 16,573.0 2008 10,836.6 4,445.3 15,281.9 2009 6,421.0 4,062.6 10,483.6
Note: Gross = purchases plus sales Source: SIFMA Foreign Activity Report (www.sifma.org/research/foreign_activity_report.html)
Global Markets • 81
stocks Bonds total
1980 2.1 1.0 3.1 1981 0.2 5.5 5.7 1982 1.3 6.6 7.9 1983 3.8 3.1 6.9 1984 1.2 4.1 5.3 1985 3.9 3.9 7.8 1986 1.9 3.7 5.6 1987 -1.1 7.8 6.7 1988 2.0 7.4 9.4 1989 13.1 6.0 19.1
1990 9.2 22.5 31.7 1991 32.0 14.8 46.8 1992 32.3 19.6 51.9 1993 62.7 80.4 143.1 1994 48.1 9.2 57.3 1995 50.3 48.4 98.7 1996 59.3 51.4 110.6 1997 40.9 48.2 89.1 1998 -6.2 17.3 11.1 1999 -15.6 5.7 -9.9
2000 13.1 4.1 17.1 2001 50.1 -30.4 19.7 2002 1.5 -28.5 -27.0 2003 82.4 -20.1 62.3 2004 91.7 2.3 94.0 2005 121.6 16.2 137.8 2006 106.2 139.7 245.9 2007 94.4 128.6 223.0 2008 -20.0 -82.0 -102.0 2009 3.3 43.2 46.5
Note: Net = purchases minus sales Source: SIFMA Foreign Activity Report (www.sifma.org/research/foreign_activity_report.html)
U.s. Net purchases of Foreign securities($ billions)
82 Global Markets • 83
Foreign Holdings of U.s. securities($ billions)
Corp. treasury/ stocks Bonds Agency total
1985 136.8 125.7 241.3 503.8
1986 183.2 165.6 291.5 640.2
1987 189.0 184.1 323.1 696.2
1988 213.8 199.0 387.2 800.0
1989 276.1 212.3 469.2 957.6
1990 243.8 218.3 488.3 950.4
1991 299.0 236.6 535.1 1,070.7
1992 329.0 253.5 595.0 1,177.4
1993 373.5 273.3 702.4 1,349.3
1994 397.7 311.4 757.7 1,466.7
1995 549.5 361.5 963.2 1,874.1
1996 672.4 433.2 1,215.5 2,321.1
1997 952.9 501.6 1,362.6 2,817.1
1998 1,250.3 607.8 1,394.1 3,252.2
1999 1,611.5 752.1 1,358.5 3,722.2
2000 1,643.2 920.6 1,462.9 4,026.6
2001 1,572.7 1,115.9 1,629.9 4,318.5
2002 1,335.8 1,267.0 1,933.5 4,808.7
2003 1,674.6 1,330.6 2,168.3 5,173.5
2004 1,904.6 1,558.9 2,688.6 6,152.1
2005 2,039.1 1,762.9 2,997.3 6,799.3
2006 2,448.1 2,320.8 3,388.5 8,157.4
2007 2,812.2 2,719.1 3,958.8 9,490.1
2008 1,775.7 2,456.7 4,655.8 8,888.2
2009 2,454.6 2,356.8 5,028.3 9,839.7
Source: Federal Reserve Flow of Funds Accounts (http://www.federalreserve.gov/releases/Z1/; Table L.107 Rest of the World)
Global Markets • 83
U.s. Holdings of Foreign securities($ billions)
stocks Bonds total
1985 44.4 75.0 119.4
1986 72.4 85.7 158.1
1987 94.7 93.9 188.6
1988 128.7 104.2 232.8
1989 197.3 116.9 314.3
1990 197.6 144.7 342.3
1991 279.0 176.8 455.8
1992 314.3 200.8 515.1
1993 543.9 309.7 853.5
1994 626.8 310.4 937.2
1995 790.6 413.3 1,203.9
1996 1,006.1 481.4 1,487.5
1997 1,207.8 543.4 1,751.2
1998 1,475.0 594.4 2,069.4
1999 2,003.7 548.2 2,551.9
2000 1,852.8 572.7 2,425.5
2001 1,612.7 557.1 2,169.7
2002 1,374.7 705.2 2,079.9
2003 2,079.4 874.4 2,953.8
2004 2,560.4 985.0 3,545.4
2005 3,317.7 1,011.6 4,329.3
2006 4,329.0 1,275.5 5,604.5
2007 5,248.0 1,587.1 6,835.1
2008 2,851.4 1,392.9 4,244.3
2009 4,096.5 1,546.4 5,642.9
Source: Federal Reserve Flow of Funds Accounts (www.sifma.org/research/foreign_activity_report.html)
84 Global Markets • 85
U.s. Acquisitions of Foreign securities
Foreign Acquisitions of U.s. securities
$ billions
$ billions
0100200300400500600700800900
100011001200
'09'08 ‘06 ‘04 ‘02‘00‘98‘96‘94‘92‘90
277.8231.9
370.2 388.0
73.3 111.2 140.4
350.2
457.8521.9 547.6
745.9
915.8
1,048.51,142.2
1005.8
412.5
254.1
18.6 58.4
-125-100
-500
50
100150
200
250
'09'08‘07‘06‘05‘04‘03‘02‘01‘00‘99‘98‘97‘96‘95‘94‘93‘92‘91‘90
11.1
98.7 110.689.1
51.9
143.1
57.3
-9.9
17.1 19.7
-27.0
62.3
94.0
137.8
245.9223.0
-102.0
46.531.7
46.8
Source: SIFMA Foreign Activity Report (www.sifma.org/research/foreign_activity_report.html)
Global Markets • 85
Major Global stock Market indices(local Currency)
Canada: France: Germany: Hong kong: Japan: Uk: s&p/tsX Comp.* CAC 40 DAX Hang seng Nikkei 225 Ft-se 100
1985 2900.60 n.a. n.a. 1093.46 13113.32 1412.60
1986 3066.18 n.a. n.a. 1638.52 18701.30 1679.00
1987 3160.05 n.a. 1000.00 1505.82 21564.00 1712.70
1988 3389.99 1573.90 1327.87 1772.18 30159.00 1793.10
1989 3969.79 2001.10 1790.37 1861.33 38915.90 2422.70
1990 3256.75 1517.90 1398.23 1982.88 23848.70 2143.50
1991 3512.36 1765.60 1577.98 2806.97 22983.80 2493.10
1992 3350.00 1857.80 1545.05 5512.39 16925.00 2846.50
1993 4329.90 2268.20 2266.68 11888.39 17417.20 3418.40
1994 4213.60 1881.15 2106.58 8191.04 19723.10 3065.50
1995 4713.50 1871.97 2253.88 10073.39 19868.20 3689.30
1996 5927.19 2315.73 2888.69 13451.45 19361.30 4118.50
1997 6699.44 2998.91 4249.68 10722.76 15258.70 5135.50
1998 6430.05 3942.66 5002.39 10048.58 13842.17 5882.60
1999 8413.75 5958.32 6958.14 16962.10 18934.34 6930.20
2000 8933.68 5926.42 6433.61 15095.53 13785.69 6222.50
2001 7688.41 4624.58 5160.10 11397.21 10542.60 5217.40
2002 6614.54 3063.91 2892.63 9321.29 8578.95 3940.40
2003 8220.89 3557.90 3965.16 12575.94 10676.64 4476.90
2004 9246.65 3821.16 4256.08 14230.14 11488.76 4814.30
2005 11272.26 4715.23 5408.26 14876.43 16111.43 5618.80
2006 12908.39 5541.76 6596.92 19964.72 17225.83 6220.81
2007 13833.10 5614.08 8067.32 27812.65 15307.78 6476.91
2008 8987.70 3217.97 4810.20 14387.48 8859.56 4434.20
2009 11746.11 3936.33 5957.43 21872.50 10546.44 5412.88
* TSE 300 through 2001; S&P/TSX Composite Index thereafter. Source: Federal Reserve (www.federalreserve.gov/releases/g5a/current)
86 Global Markets • 87
Foreign exchange rates(Foreign Currency Per $)
Canada:Dollar
Japan:Yen
eMUMembers:
euro*
Uk:pound*
MajorCurrencies
index**
1985 1.3658 238.47 ..... 1.2974 133.551986 1.3896 168.35 …. 1.4678 109.771987 1.3259 144.60 …. 1.6399 97.151988 1.2306 128.17 …. 1.7813 90.421989 1.1842 138.07 …. 1.6383 94.29
1990 1.1668 145.00 …. 1.7841 89.911991 1.1460 134.59 …. 1.7674 88.581992 1.2085 126.78 …. 1.7662 87.001993 1.2902 111.08 …. 1.5015 89.901994 1.3664 102.18 …. 1.5319 88.42
1995 1.3725 93.96 …. 1.5785 83.411996 1.3638 108.78 …. 1.5607 87.241997 1.3849 121.06 …. 1.6376 93.931998 1.4836 130.99 …. 1.6573 98.451999 1.4858 113.73 1.0653 1.6172 96.88
2000 1.4855 107.80 0.9232 1.5156 101.572001 1.5487 121.57 0.8952 1.4397 107.662002 1.5704 125.22 0.9454 1.5025 105.982003 1.4008 115.94 1.1321 1.6347 93.042004 1.3017 108.15 1.2438 1.8330 85.42
2005 1.2115 110.11 1.2449 1.8204 83.782006 1.1340 116.31 1.2563 1.8434 82.462007 1.0734 117.76 1.3711 2.0020 77.842008 1.0660 103.39 1.4726 1.8545 74.342009 1.1412 93.68 1.3935 1.5661 77.75
* U.S. dollar per foreign currency unit. ** Trade-weighted value of the dollar. A weighted average of the foreign exchange value of the U.S. dollar against a subset of
the broad index currencies that circulate widely outside the country of issue.Source: Federal Reserve Board, Statistical Release G.5A (http://www.federalreserve.gov/releases/g5a/)
Global Markets • 87
American Depositary receipts (ADrs)
total Number share Dollar of Listed Volume Volume ADr programs (Bils.) ($ Bils.)
1985 108 1.4 –
1986 116 2.0 –
1987 139 2.8 –
1988 150 1.9 40.6
1989 170 3.2 60.8
1990 176 3.8 74.8
1991 186 4.6 94.1
1992 215 4.3 124.9
1993 256 6.3 200.7
1994 317 7.3 247.9
1995 357 10.2 276.0
1996 426 10.8 341.0
1997 457 12.4 503.0
1998 505 15.5 563.0
1999 532 16.8 667.0
2000 608 28.7 1,185.0
2001 623 31.1 752.0
2002 553 32.1 550.0
2003 509 33.1 630.0
2004 510 37.4 852.0
2005 485 39.2 1,000.0
2006 478 52.6 1,500.0
2007 427 76.0 3,000.0
2008 403 118.0 3,700.0
2009 384 135.0 2,700.0
Listed on NYSE, AMEX and NASDAQ
Source: Bank of New York (http://www.adrbny.com/dr_pub_statistics.jsp)
88 Global Markets • 89
Glo
bal e
quity
Mar
ket C
apita
lizat
ion
(Mar
ket V
alue
in $
bill
ions
)
A
us-
Ger
- H
ong
Net
her-
si
nga-
Dev
elop
ed
emer
ging
tr
alia
C
anad
a Fr
ance
m
any
kon
g it
aly
Japa
n la
nds
pore
sw
itz.
Uk
U
.s.
Mar
kets
M
arke
ts
tota
l
1980
60
11
8 55
72
39
25
38
0 29
24
38
20
5 1,
448
2,55
2 18
6 2,
738
1981
54
10
6 38
63
39
24
41
8 23
35
35
18
1 1,
333
2,41
3 16
3 2,
576
1982
42
10
4 28
69
19
20
41
7 26
31
37
19
6 1,
520
2,57
9 14
9 2,
728
1983
55
14
1 38
83
17
21
56
5 34
16
43
22
6 1,
898
3,21
8 16
6 3,
384
1984
49
13
5 41
78
24
26
66
7 31
12
39
24
3 1,
863
3,29
6 14
6 3,
442
1985
60
14
7 79
18
4 35
59
97
9 59
11
90
32
8 2,
325
4,49
7 17
1 4,
667
1986
95
16
6 15
0 25
8 54
14
0 1,
842
84
17
132
440
2,63
7 6,
276
238
6,51
319
87
106
219
172
213
54
120
2,80
3 86
18
12
9 68
1 2,
589
7,49
9 33
2 7,
831
1988
13
8 24
2 24
5 25
2 74
13
5 3,
907
114
24
141
771
2,79
4 9,
228
500
9,72
819
89
141
291
365
365
77
169
4,39
3 15
8 36
17
1 82
7 3,
506
10,9
67
745
11,7
13 19
90
109
242
314
355
83
149
2,91
8 12
0 34
16
0 84
9 3,
059
8,79
5 60
4 9,
400
1991
14
9 26
7 34
8 39
3 12
2 15
9 3,
131
136
48
174
988
4,08
8 10
,447
89
8 11
,346
1992
14
5 24
3 35
1 34
8 17
2 12
9 2,
399
135
49
195
927
4,48
5 9,
941
991
10,9
3219
93
205
327
456
463
385
136
3,00
0 18
2 13
3 27
2 1,
152
5,13
6 12
,353
1,
664
14,0
1719
94
219
315
451
471
270
180
3,72
0 28
3 13
5 28
4 1,
210
5,06
7 13
,233
1,
883
15,1
1719
95
245
366
522
577
304
210
3,66
7 35
6 14
8 43
4 1,
408
6,85
8 15
,880
1,
893
17,7
7319
96
312
486
591
671
449
258
3,08
9 37
9 15
0 40
2 1,
740
8,48
4 18
,007
2,
246
20,2
5319
97
296
568
674
825
413
345
2,21
7 46
9 10
6 57
5 1,
996
11,3
09
20,9
55
2,16
1 23
,116
1998
32
9 54
3 99
1 1,
094
343
570
2,49
6 60
3 94
68
9 2,
374
13,4
51
25,1
18
1,80
6 26
,923
1999
42
8 80
1 1,
475
1,43
2 60
9 72
8 4,
547
695
198
693
2,93
3 16
,635
33
,134
2,
974
36,1
08
2000
37
3 84
1 1,
447
1,27
0 62
3 76
8 3,
157
640
153
792
2,57
7 15
,104
29
,575
2,
612
32,1
8820
01
375
701
1,17
4 1,
072
506
527
2,25
2 45
8 11
7 62
6 2,
165
13,8
55
25,3
34
2,57
3 27
,907
2002
37
9 57
5 96
7 69
1 46
3 48
1 2,
126
401
102
553
1,86
4 11
,098
21
,019
2,
491
23,5
1020
03
585
894
1,35
6 1,
079
551
615
3,04
1 48
9 22
9 72
7 2,
460
14,2
66
28,2
62
3,77
5 32
,037
2004
77
6 1,
178
1,55
9 1,
195
665
790
3,67
8 53
9 27
7 82
6 2,
816
16,3
24
33,2
04
4,94
8 38
,152
2005
80
4 1,
481
1,75
9 1,
221
693
798
4,73
7 59
3 31
7 93
9 3,
058
16,9
71
36,1
83
7,13
6 43
,319
2006
1,
096
1,70
1 2,
429
1,63
8 89
5 1,
027
4,72
6 78
0 27
6 1,
213
3,79
4 19
,426
42
,917
10
,459
53
,375
2007
1,
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2009
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Sour
ce:
Stan
dard
and
Poo
r's, G
loba
l Sto
ck M
arke
ts Fa
ctbo
ok (h
ttp://
ww
w.sp
glob
al.co
m)
Global Markets • 89
Glo
bal e
quity
Mar
ket C
apita
lizat
ion
(In
Perc
ent)
A
us-
Can
-
Ger
- H
ong
Net
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si
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Sour
ce:
Stan
dard
and
Poo
r's, G
loba
l Sto
ck M
arke
ts Fa
ctbo
ok (h
ttp://
ww
w.sp
glob
al.co
m)
90 Global Markets • 91
A
us-
H
ong
Net
her-
si
nga-
Dev
elop
ed
emer
ging
tral
ia
Can
ada
Fran
ce
Ger
man
y k
ong
ital
y Ja
pan
land
s po
re
switz
. U
k
U.s
. M
arke
ts
Mar
kets
to
tal
1989
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1995
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9.43
75
9.08
10
,473
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64
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27
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.40
1996
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77
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08
2,20
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48
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1,80
3.67
4,
792.
60
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27.7
7 22
7.94
90
7.62
11
,311
.98
3,67
3.71
73
5.59
28
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1997
29
0.38
78
4.47
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63
.59
1,59
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28.2
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12
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1998
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1999
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6,
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71
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Sour
ce: B
ank
of In
tern
atio
nal S
ettle
men
t (BI
S)
Glo
bal B
ond
Mar
ket O
utst
andi
ngs
($ b
illio
ns)
Global Markets • 91
Glo
bal B
ond
Mar
ket i
ssua
nce
($ b
illio
ns)
Sour
ces:
Thom
son
Fina
ncia
l for
priv
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ecto
r iss
uanc
e;cou
ntry
-spe
cific g
over
nmen
t sou
rces
, inc
ludi
ng ce
ntra
l ban
k an
d go
vern
men
t web
sites
, for
gove
rnm
ent i
ssua
nce d
ata.
Aus
- tr
alia
Can
- ad
aFr
ance
Ger
man
yH
ong
kon
git
aly
Japa
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ethe
r-
land
ssi
nga-
po
reU
kU
.s.
Oth
erD
evel
oped
Mar
kets
emer
ging
M
arke
tsto
tal
1996
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618
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144
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039
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1998
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1999
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2001
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92 Global Markets • 93
Glo
bal e
quity
Mar
kets
tra
ding
Vol
ume
($ b
illio
ns)
A
us-
Ger
- H
ong
si
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Dev
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ging
tr
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C
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68
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58
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7 67
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8 10
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,613
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16
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8 1,
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1,77
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12,7
21
80,5
1720
09
762
1,24
0 1,
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1,28
9 1,
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460
4,19
3 60
4 25
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402
46,7
36
64,4
58
15,9
60
80,4
18
Sou
rce:
Stan
dard
and
Poo
r's, G
loba
l Sto
ck M
arke
ts Fa
ctbo
ok (h
ttp://
ww
w.sp
glob
al.co
m)
Global Markets • 93
A
us-
Ger
- H
ong
si
nga-
Dev
elop
ed
emer
ging
tr
alia
C
an
Fran
ce
man
y k
ong
ital
y Ja
pan
Net
h.
pore
sw
itz.
Uk
U
.s.
Mar
kets
M
arke
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l
198
0 10
28
10
15
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9
161
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36
41
0 71
3 29
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8 23
8
14
19
11
224
4 6
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33
41
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147
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50
8 76
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9 28
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33
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10
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4 11
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1,23
8 34
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5 16
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72
10
14
33
0 17
1
n.a.
68
99
7 1,
601
45
1,64
6 1
986
27
57
52
136
15
45
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6 31
3
n.a.
13
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1 83
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198
7 59
75
88
37
3 48
32
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40
7 n.
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390
2,42
3 5,
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170
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37
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66
350
23
32
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8 35
4
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57
9 1,
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4 41
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9 45
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10
7 62
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39
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90
14
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9 1,
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8
199
0 40
71
11
7 50
2 35
43
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40
20
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27
9 1,
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4,61
6 89
8 5,
515
199
1 47
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11
4 37
9 39
25
99
6 39
18
69
31
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6 61
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199
2 46
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12
2 44
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28
63
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14
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38
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5 62
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199
3 68
14
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16
8 42
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8 1,
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5 1
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118
1,12
1 17
1 81
22
7 46
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564
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2 1
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184
365
574
107
87
1,23
2 24
9 60
31
1 51
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109
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20 1
996
145
265
277
769
166
102
1,25
2 34
0 43
39
3 57
8 7,
121
12,0
17
1,56
5 13
,601
199
7 17
2 29
5 40
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6 48
9 19
8 1,
252
285
64
495
829
10,2
16
16,1
04
2,73
2 18
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199
8 16
1 33
1 59
1 76
2 20
6 47
6 94
9 42
0 51
63
7 1,
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13,1
48
20,1
98
1,96
7 22
,174
199
9 19
4 35
2 78
8 81
5 24
7 53
6 1,
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478
98
539
1,37
8 18
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27
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2,
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61
200
0 22
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9 37
8 77
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91
609
1,83
5 31
,862
43
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3,
953
47,8
66 2
001
241
462
1,07
7 1,
420
196
552
1,82
6 1,
033
63
301
1,86
1 29
,041
39
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2,
409
42,0
74 2
002
295
406
935
1,23
3 21
1 54
0 1,
573
462
56
657
1,91
0 25
,371
35
,288
2,
487
37,7
75 2
003
370
468
1,10
4 1,
147
244
663
2,27
3 53
0 88
57
6 2,
212
15,5
47
26,8
96
2,95
0 29
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200
4 51
4 65
4 1,
416
1,40
6 28
2 80
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430
747
81
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7 19
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35
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4,
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39,4
60 2
005
616
845
1,52
6 1,
763
294
1,11
5 4,
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836
120
883
4,16
7 21
,510
41
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5,
693
47,3
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006
826
1,29
0 2,
505
2,48
7 40
4 1,
366
6,25
2 1,
096
184
1,28
7 4,
242
33,2
68
59,2
58
8,22
7 67
,485
200
7 1,
323
1,64
5 3,
419
3,36
3 91
7 2,
313
6,49
7 1,
803
384
1,77
8 10
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42
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82
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16
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98
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200
8 1,
018
1,77
1 3,
265
3,10
5 1,
626
669
5,87
9 1,
143
271
1,50
5 6,
487
36,4
67
67,7
96
12,7
21
80,5
1720
09
762
1,24
0 1,
366
1,28
9 1,
490
460
4,19
3 60
4 25
2 79
6 3,
402
46,7
36
64,4
58
15,9
60
80,4
18
Sou
rce:
Stan
dard
and
Poo
r's, G
loba
l Sto
ck M
arke
ts Fa
ctbo
ok (h
ttp://
ww
w.sp
glob
al.co
m)
A
us-
Ger
- H
ong
Net
her-
si
nga-
Dev
elop
ed
emer
ging
tr
alia
C
an.
Fran
ce
man
y k
ong
ital
y Ja
pan
land
s po
re
switz
. U
k
U.s
. M
arke
ts
Mar
kets
to
tal
1980
1.
3 3.
8 1.
4 2.
1 2.
6 1.
2 21
.7
0.7
0.5
--
4.8
55.3
96
.1
3.9
100.
019
81
1.0
2.9
1.0
1.7
2.3
1.3
27.6
0.
5 0.
8 --
4.
0 51
.2
95.6
4.
4 10
0.0
1982
0.
7 2.
1 0.
9 1.
8 1.
0 0.
4 18
.7
0.6
0.3
--
4.2
64.6
97
.0
3.0
100.
019
83
0.8
2.3
0.7
2.7
0.4
0.3
18.8
0.
8 0.
5 --
3.
5 64
.9
97.6
2.
4 10
0.0
1984
0.
8 2.
0 0.
6 2.
3 0.
5 0.
3 22
.5
1.0
0.3
--
3.8
61.8
97
.3
2.7
100.
0
1985
1.
0 2.
4 0.
9 4.
3 0.
6 0.
8 20
.1
1.0
0.1
--
4.2
60.6
97
.3
2.7
100.
019
86
0.8
1.6
1.4
3.8
0.4
1.3
32.1
0.
9 0.
1 --
3.
7 50
.3
97.7
2.
3 10
0.0
1987
1.
0 1.
3 1.
5 6.
4 0.
8 0.
6 35
.0
0.7
0.1
--
6.7
41.4
97
.1
2.9
100.
019
88
0.6
1.1
1.1
5.8
0.4
0.5
43.3
0.
6 0.
1 --
9.
7 28
.7
93.1
6.
9 10
0.0
1989
0.
6 1.
2 1.
4 8.
4 0.
5 0.
5 37
.5
1.2
0.2
--
4.3
27.0
84
.3
15.7
10
0.0
1990
0.
7 1.
3 2.
1 9.
1 0.
6 0.
8 29
.1
0.7
0.4
--
5.1
31.8
83
.7
16.3
10
0.0
1991
0.
9 1.
6 2.
3 7.
6 0.
8 0.
5 19
.8
0.8
0.4
1.4
6.3
43.5
87
.8
12.2
10
0.0
1992
1.
0 1.
7 2.
5 9.
3 1.
6 0.
6 13
.3
1.0
0.3
1.6
8.0
43.5
86
.9
13.1
10
0.0
1993
0.
9 2.
0 2.
4 4.
2 1.
8 0.
9 13
.3
0.9
1.1
2.3
5.9
46.6
84
.8
15.2
10
0.0
1994
1.
1 1.
8 3.
5 5.
2 1.
7 1.
3 12
.7
1.9
0.9
2.6
5.3
40.4
81
.2
18.8
10
0.0
199
5 1.
0 1.
8 3.
6 5.
6 1.
0 0.
9 12
.1
2.4
0.6
3.0
5.0
50.0
10
.2
89.8
10
0.0
199
6 1.
1 2.
0 2.
0 5.
7 1.
2 0.
8 9.
2 2.
5 0.
3 2.
9 4.
3 52
.4
88.4
11
.5
100.
0 1
997
0.9
1.6
2.1
2.8
2.6
1.1
6.6
1.5
0.3
2.6
4.4
54.1
85
.3
14.5
10
0.0
199
8 0.
7 1.
5 2.
7 3.
4 0.
9 2.
1 4.
3 1.
9 0.
2 2.
9 5.
3 59
.3
91.1
8.
9 10
0.0
199
9 0.
6 1.
2 2.
6 2.
7 0.
8 1.
8 6.
1 1.
6 0.
3 1.
8 4.
5 61
.2
90.4
9.
6 10
0.0
2
000
0.5
1.3
2.3
2.2
0.8
1.6
5.6
1.4
0.2
1.3
3.8
66.6
91
.7
8.3
100.
0 2
001
0.6
1.1
2.6
3.4
0.5
1.3
4.3
2.5
0.2
0.7
4.4
69.0
94
.3
5.7
100.
0 2
002
0.8
1.1
2.5
3.3
0.6
1.4
4.2
1.2
0.1
1.7
5.1
67.2
93
.4
6.6
100.
020
03
1.2
1.6
3.7
3.8
0.8
2.2
7.6
1.8
0.3
1.9
7.4
52.1
90
.1
9.9
100.
020
04
1.3
1.7
3.6
3.6
0.7
2.0
8.7
1.9
0.2
1.8
9.4
49.0
89
.8
10.2
10
0.0
2005
1.
3 1.
8 3.
2 3.
7 0.
6 2.
4 10
.5
1.8
0.3
1.9
8.8
45.4
88
.0
12.0
10
0.0
2006
1.
2 1.
9 3.
7 3.
7 0.
6 2.
0 9.
3 1.
6 0.
3 1.
9 6.
3 49
.3
87.8
12
.2
100.
020
07
1.3
1.7
3.5
3.4
0.9
2.3
6.6
1.8
0.4
1.8
10.4
43
.1
83.4
16
.6
100.
020
08
1.3
2.2
4.1
3.9
2.0
0.8
7.3
1.4
0.3
1.9
8.1
45.3
84
.2
15.8
10
0.0
2009
0.
9 1.
5 1.
7 1.
6 1.
9 0.
6 5.
2 0.
8 0.
3 1.
0 4.
2 58
.1
80.2
19
.8
100.
0
Glo
bal e
quity
Mar
kets
tra
ding
Vol
ume
Sou
rce:
Stan
dard
and
Poo
r's, G
loba
l Sto
ck M
arke
ts Fa
ctbo
ok (h
ttp://
ww
w.sp
glob
al.co
m)
94 Global Markets • 95
Fore
ign
Gro
ss A
ctiv
ity in
U.s
. equ
ities
($ M
illio
ns)
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
euro
pe1,
902,
506
2,95
7,58
22,
424,
970
2,25
1,59
52,
448,
582
3,51
6,10
73,
811,
428
4,61
4,53
27,
754,
987
9,54
1,87
04,
688,
249
Euro
. Uni
on1,
672,
056
2,63
1,11
42,
234,
358
2,09
0,69
12,
276,
874
3,32
5,98
93,
603,
456
4,35
2,24
87,
443,
782
9,16
3,24
12,
608,
015
F
ranc
e31
3,57
738
3,11
934
5,82
445
6,98
751
1,24
678
1,01
476
3,80
31,
214,
552
2,56
9,64
64,
400,
699
2,17
7,56
2
Ger
man
y12
1,06
621
3,04
415
3,22
910
9,42
188
,291
145,
787
175,
520
199,
213
520,
164
325,
681
92,2
90
Gre
ece
3,42
46,
192
3,43
82,
513
1,79
41,
916
2,14
24,
023
3,81
04,
827
3,89
6
Net
herla
nds
82,8
3111
8,57
179
,667
80,0
3171
,020
81,3
8474
,949
108,
786
226,
384
242,
911
86,5
87
UK
867,
480
1,40
9,78
61,
233,
296
1,09
0,72
61,
256,
415
1,99
7,56
72,
246,
415
2,42
0,70
63,
640,
431
3,67
1,16
01,
739,
250
switz
erla
nd20
9,71
629
1,60
815
1,13
412
1,19
711
8,00
212
7,40
213
3,55
115
5,93
420
2,56
922
1,59
817
0,38
8
Can
ada
169,
157
307,
448
219,
474
346,
487
323,
043
240,
119
220,
102
265,
118
411,
110
756,
255
603,
094
Latin
Am
er. &
Car
ibbe
an2,
101,
603
3,21
0,26
22,
934,
691
3,44
3,06
33,
128,
911
4,03
8,55
34,
524,
599
8,40
8,06
412
,387
,906
12,9
75,2
057,
390,
529
arg
entin
a6,
387
10,2
046,
923
7,52
99,
163
8,39
76,
930
9,71
710
,220
11,9
0713
,982
berm
uda
704,
155
1,11
6,94
475
7,01
81,
102,
151
779,
119
939,
401
1,15
4,31
61,
476,
877
1,87
2,20
21,
727,
733
906,
430
Mex
ico
9,90
113
,604
8,54
78,
526
11,9
5012
,923
18,7
3631
,139
36,1
7863
,263
46,0
41N
eth.
Ant
illes
281,
535
289,
259
232,
740
271,
563
132,
753
114,
605
94,0
4710
8,82
311
9,16
612
6,95
244
,232
asia
363,
203
508,
945
365,
030
293,
961
258,
771
251,
221
260,
783
316,
697
451,
626
562,
278
429,
825
Hon
g k
ong
27,3
5638
,583
35,6
3120
,997
19,4
8126
,051
26,4
1837
,619
118,
350
127,
938
61,9
82Ja
pan
186,
009
231,
866
134,
248
118,
532
100,
350
92,6
4910
0,32
088
,264
103,
471
101,
898
122,
896
all
Cou
ntri
es4,
573,
796
7,03
5,50
25,
986,
324
6,36
9,33
16,
197,
539
8,08
3,33
78,
859,
372
13,6
57,3
0321
,083
,936
23,9
40,5
2113
,172
,100
Not
e: Se
e SIF
MA’s
For
eign
Act
ivity
Rep
ort f
or fu
rthe
r inf
orm
atio
n. h
ttp://
ww
w.sif
ma.
org/
rese
arch
/fore
ign_
activ
ity_r
epor
t.htm
lSo
urce
: U.S
. Tre
asur
y D
epar
tmen
t (ht
tp://
ww
w.tre
as.g
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secz
.shtm
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secs
.htm
l)
Global Markets • 95
Fore
ign
Net
pur
chas
es o
f U.s
. equ
ities
($ M
illio
ns)
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
euro
pe98
,060
164,
654
88,0
9832
,909
24,3
5019
,473
38,8
8096
,552
89,2
3311
,646
111,
319
Euro
. Uni
on91
,230
149,
238
83,2
6428
,315
21,4
2619
,421
34,6
9695
,954
86,3
04-2
,067
7,47
9
Fra
nce
3,81
35,
727
5,91
42,
127
6,21
6-8
287,
283
21,7
4019
,516
-7,1
893,
686
G
erm
any
13,4
1031
,752
8,41
5-1
29-9
91-2
,379
-3,7
70-8
,165
592
-19,
341
-1,2
00
Gre
ece
-90
804
-14
33-4
478
48-2
3186
-493
58
Net
herla
nds
8,08
34,
915
10,9
194,
307
702,
228
-2,2
75-5
,426
6,88
6-1
,469
1,82
9
UK
42,9
0258
,736
38,4
9215
,172
851
15,1
3719
,953
75,4
6469
,473
29,9
3693
,948
switz
erla
nd5,
650
11,9
603,
456
2,78
7-2
,194
-1,2
761,
153
1,19
4-2
,977
5,40
47,
896
Can
ada
-335
5,95
610
,984
8,20
711
,697
-433
16,3
4211
,822
8,08
67,
383
14,9
93
Latin
Am
er. &
Car
ibbe
an5,
187
-17,
812
-5,1
57-1
5,41
9-5
31-5
0514
,331
37,1
7249
,370
-39,
313
62,1
98a
rgen
tina
489
746
593
199
-299
-77
7018
361
237
330
5be
rmud
a-1
,459
-10,
052
-11,
560
-9,1
31-4
,329
911
4,65
66,
125
5,45
0-1
,155
-770
Mex
ico
8539
4-6
7348
4-2
98-2
61-2
741,
753
148
507
10,7
77N
eth.
Ant
illes
-3,5
47-8
,617
516
-537
741
975
2,65
1-5
17-2
,826
-4,6
782,
706
asia
3,37
921
,683
22,5
1621
,367
2,63
56,
445
9,60
93,
479
43,9
7465
,308
59,4
13H
ong
kon
g-1
5621
567
51,
795
795
-779
842
-465
35,4
3427
,462
3,54
6Ja
pan
5,72
32,
070
6,78
812
,336
-2,2
302,
837
218
-668
-4,9
7321
,382
13,2
71
all
Cou
ntri
es10
7,52
217
4,89
011
6,38
650
,189
37,8
8125
,815
79,1
4214
9,84
519
5,49
840
,751
217,
072
Sour
ce: U
.S. T
reas
ury
Dep
artm
ent (
http
://w
ww.
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.gov
/tic/
ticse
cz.sh
tml#
usse
cs.h
tml)
96 Global Markets • 97
U.s
. Gro
ss t
rans
actio
ns in
For
eign
sto
cks
($ M
illio
ns)
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
euro
pe1,
340,
876
2,06
2,81
51,
583,
175
1,38
3,17
11,
393,
559
1,77
1,48
92,
290,
210
3,37
1,01
14,
613,
829
4,80
8,73
12,
763,
621
Euro
. Uni
on1,
254,
960
1,93
8,69
61,
506,
865
1,31
7,80
71,
314,
260
1,67
4,00
22,
167,
883
3,12
1,77
04,
412,
966
4,59
2,32
856
2,96
2
Fra
nce
55,1
5792
,083
75,7
3660
,395
84,8
8398
,423
119,
280
167,
224
236,
190
269,
778
210,
647
G
erm
any
90,9
1014
7,64
086
,530
57,5
0145
,406
39,9
7951
,239
78,4
2694
,172
108,
201
64,1
09
Gre
ece
2,82
02,
008
2,69
81,
048
1,48
02,
739
3,59
84,
721
5,42
04,
463
2,60
6
Net
herla
nds
53,8
5079
,527
53,3
6942
,604
35,5
8935
,659
44,3
5189
,667
155,
696
184,
026
102,
099
U
K90
6,65
11,
350,
347
1,12
7,08
41,
057,
087
1,02
4,68
41,
360,
205
1,71
3,26
02,
463,
223
3,45
2,48
73,
511,
738
1,99
8,09
6sw
itzer
land
63,5
5594
,616
49,9
2245
,811
44,5
1049
,833
62,5
2379
,725
115,
972
126,
844
97,0
33 C
anad
a97
,566
171,
861
145,
409
124,
806
126,
865
157,
338
236,
377
322,
892
446,
982
605,
528
413,
790
Latin
Am
er. &
Car
ibbe
an32
6,36
051
9,48
848
2,28
450
4,22
450
3,26
168
4,64
990
7,89
22,
140,
055
3,28
3,02
93,
310,
325
1,89
5,85
7a
rgen
tina
5,70
79,
341
5,25
03,
232
2,81
03,
762
5,81
58,
991
11,5
6812
,161
5,74
3M
exic
o16
,341
22,9
0120
,040
16,7
5714
,549
20,1
9625
,887
48,1
4866
,116
65,7
9840
,937
asia
522,
257
798,
092
581,
073
480,
357
652,
896
800,
125
931,
033
1,48
8,98
21,
940,
396
1,85
2,84
91,
167,
089
Hon
g k
ong
86,7
6916
8,08
912
9,28
197
,556
127,
111
147,
829
184,
601
423,
456
655,
040
648,
346
515,
701
Japa
n35
5,87
050
1,20
834
9,43
828
8,98
034
8,91
939
4,21
754
9,36
278
4,14
991
0,29
478
4,55
036
6,16
6
all
Cou
ntri
es2,
338,
965
3,61
5,67
02,
845,
441
2,53
7,08
12,
747,
347
3,51
4,59
44,
495,
327
7,50
2,30
510
,520
,766
10,8
36,6
086,
422,
942
Sour
ce: U
.S. T
reas
ury
Dep
artm
ent (
http
://w
ww.
treas
.gov
/tic/
ticse
cz.sh
tml#
usse
cs.h
tml)
Global Markets • 97
U.s
. Net
pur
chas
es o
f For
eign
sto
cks
($ M
illio
ns)
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
euro
pe-6
1,26
0-1
0,34
117
,295
3,98
315
,753
51,4
4745
,710
70,1
3569
,693
-17,
251
-9,4
32Eu
ro. U
nion
-56,
708
-19,
786
18,7
731,
269
14,0
4850
,726
42,2
7765
,974
67,4
42-1
4,22
4-6
,573
F
ranc
e-1
,385
-1,8
69-2
,338
469
1,69
13,
697
3,96
45,
068
6,14
6-3
72-2
,056
G
erm
any
-2,4
28-8
,570
426
-1,3
69-2
,464
2,55
71,
907
3,24
88,
860
-3,8
81-1
,578
G
reec
e-1
90-1
0032
194
8435
1-5
065
664
-239
164
N
ethe
rland
s-3
,512
2,43
5-3
,189
-2,9
30-9
93-2
631,
621
-3,0
31-6
,230
490
-861
U
K-3
8,49
1-1
,937
21,4
186,
903
17,4
5434
,967
26,8
0261
,015
66,6
852,
068
-1,6
05sw
itzer
land
-3,4
597,
788
-1,6
583,
515
584
-707
2,38
397
1,16
8-5
16-5
86
Can
ada
854
8,82
9-1
,733
-4,0
222,
783
806
3,41
17,
634
5,55
01,
978
3,18
3
Latin
Am
er. &
Car
ibbe
an-1
,120
25,6
224,
728
3,45
6-3
,455
-8,3
372,
826
-21,
551
11,7
4545
,269
10,4
37a
rgen
tina
-273
-157
-76
-100
4-2
14-4
722
923
614
9-2
7M
exic
o1,
591
-1,7
93-1
,076
1,33
5-2
,073
-2,2
561,
453
-24
-1,3
60-4
,876
-535
asia
46,8
73-1
2,64
227
,523
-1,9
1966
,342
45,3
7763
,821
41,2
862,
746
-52,
973
1,70
4H
ong
kon
g-2
,777
3,00
54,
823
-3,1
864,
223
-1,9
616,
723
21,2
40-6
,674
-124
,340
186
Japa
n46
,134
-17,
400
19,9
382,
024
39,5
6333
,177
39,8
182,
085
1,73
8-2
1,61
43,
402
all
Cou
ntri
es-1
5,64
39,
502
50,1
131,
493
82,3
6791
,678
121,
585
106,
181
94,4
28-2
0,00
83,
255
Sour
ce: U
.S. T
reas
ury
Dep
artm
ent (
http
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ww.
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.gov
/tic/
ticse
cz.sh
tml#
usse
cs.h
tml)
98
Global Derivatives Market(Notional Principal Value Outstanding, $ Billions)
exchange- Over-the- traded Counter (OtC)* tOtAL
1990 2,286 3,450 5,737
1991 3,521 4,449 7,970
1992 4,638 5,346 9,984
1993 7,756 8,475 16,231
1994 8,845 11,303 20,148
1995 9,282 17,713 26,995
1996 10,018 25,453 35,471
1997 12,407 29,035 41,442
1998 13,975 80,309 94,284
1999 13,588 88,202 101,790
2000 14,246 95,200 109,445
2001 23,748 111,178 134,926
2002 23,826 141,665 165,491
2003 36,693 197,167 233,860
2004 46,511 258,628 305,139
2005 57,242 299,261 356,503
2006 69,380 418,131 487,511
2007 79,067 595,738 674,805
2008 57,715 547,983 605,699
2009 73,137 614,674 687,811
* Data since 1998 not strictly comparable to prior years. Source: Bank for International Settlements (http://www.bis.org/statistics/derstats.htm)
SavingS &inveStment
Savings & Investment • 101
Savings & Investment • 101
Federal Receipts, Outlays, Deficit and Debt($ Billions, Fiscal Year)
Receipts OutlaysSurplus or
Deficit
Gross Federal
Debt
Federal Debt Held by the
Public GDP
As % of GDP
Surplus or Deficit
Federal Debt Held
by the Public
1975 279.1 332.3 -53.2 541.9 394.7 1,560.2 -3.4% 25.3%1976 298.1 371.8 -73.7 629.0 477.4 1,738.1 -4.2% 27.5%1977 355.6 409.2 -53.7 706.4 549.1 1,973.5 -2.7% 27.8%1978 399.6 458.7 -59.2 776.6 607.1 2,217.5 -2.7% 27.4%1979 463.3 504.0 -40.7 829.5 640.3 2,501.4 -1.6% 25.6%
1980 517.1 590.9 -73.8 909.0 711.9 2,724.2 -2.7% 26.1%1981 599.3 678.2 -79.0 994.8 789.4 3,057.0 -2.6% 25.8%1982 617.8 745.7 -128.0 1,137.3 924.6 3,223.7 -4.0% 28.7%1983 600.6 808.4 -207.8 1,371.7 1,137.3 3,440.7 -6.0% 33.1%1984 666.5 851.9 -185.4 1,564.6 1,307.0 3,844.4 -4.8% 34.0%
1985 734.1 946.4 -212.3 1,817.4 1,507.3 4,146.3 -5.1% 36.4%1986 769.2 990.4 -221.2 2,120.5 1,740.6 4,403.9 -5.0% 39.5%1987 854.4 1,004.1 -149.7 2,346.0 1,889.8 4,651.4 -3.2% 40.6%1988 909.3 1,064.5 -155.2 2,601.1 2,051.6 5,008.5 -3.1% 41.0%1989 991.2 1,143.8 -152.6 2,867.8 2,190.7 5,399.5 -2.8% 40.6%
1990 1,032.1 1,253.1 -221.0 3,206.3 2,411.6 5,734.5 -3.9% 42.1%1991 1,055.1 1,324.3 -269.2 3,598.2 2,689.0 5,930.5 -4.5% 45.3%1992 1,091.3 1,381.6 -290.3 4,001.8 2,999.7 6,242.0 -4.7% 48.1%1993 1,154.5 1,409.5 -255.1 4,351.0 3,248.4 6,587.3 -3.9% 49.3%1994 1,258.7 1,461.9 -203.2 4,643.3 3,433.1 6,976.6 -2.9% 49.2%
1995 1,351.9 1,515.9 -164.0 4,920.6 3,604.4 7,341.1 -2.2% 49.1%1996 1,453.2 1,560.6 -107.4 5,181.5 3,734.1 7,718.3 -1.4% 48.4%1997 1,579.4 1,601.3 -21.9 5,369.2 3,772.3 8,211.7 -0.3% 45.9%1998 1,722.0 1,652.7 69.3 5,478.2 3,721.1 8,663.0 0.8% 43.0%1999 1,827.6 1,702.0 125.6 5,605.5 3,632.4 9,208.4 1.4% 39.4%
2000 2,025.2 1,789.0 236.2 5,628.7 3,409.8 9,821.0 2.4% 34.7%2001 1,991.1 1,863.9 128.2 5,769.9 3,319.6 10,225.3 1.3% 32.5%2002 1,853.1 2,010.9 -157.8 6,198.4 3,540.4 10,543.9 -1.5% 33.6%2003 1,782.3 2,159.9 -377.6 6,760.0 3,913.4 10,979.8 -3.4% 35.6%2004 1,880.1 2,292.9 -412.7 7,354.7 4,295.5 11,685.6 -3.5% 36.8%
2005 2,153.6 2,472.0 -318.3 7,905.3 4,592.2 12,445.7 -2.6% 36.9%2006 2,406.9 2,655.1 -248.2 8,451.4 4,829.0 13,224.9 -1.9% 36.5%2007 2,568.0 2,728.7 -160.7 8,950.7 5,035.1 13,896.0 -1.2% 36.2%2008 2,524.0 2,982.6 -458.6 9,986.1 5,803.1 14,439.0 -3.2% 40.2%2009 2,105.0 3,517.7 -1,412.7 11,875.9 7,544.7 14,237.2 -9.9% 53.0%
2010* 2,165.1 3,720.7 -1,555.6 13,786.6 9,297.7 14,623.9 -10.6% 63.6%2011* 2,567.2 3,833.9 -1,266.7 15,144.0 10,498.3 15,299.0 -8.3% 68.6%2012* 2,926.4 3,754.9 -828.5 16,335.7 11,472.1 16,203.3 -5.1% 70.8%2013* 3,188.1 3,315.4 -127.3 17,453.5 12,325.7 17,182.2 -0.7% 71.7%2014* 3,455.5 4,161.2 -705.8 18,532.3 13,139.3 18,192.6 -3.9% 72.2%2015* 3,633.7 4,385.5 -751.9 19,683.3 13,988.4 19,190.4 -3.9% 72.9%
* Estimates Sources: Economic Report of the President; Office of Management and Budget (http://www.whitehouse.gov/omb/budget/fy2009/sheets/hist09z1.xls)
102 Savings & Investment • 103
Economic Indicators Real Civilian Personal Annual Nominal GDP % Chg. Unemploy- Savings CPI % Chg. GDP (Chained in Real ment Rate Rate (Monthly in CPI ($Bil) 2000 $Bil) GDP (%) (%) Avg.) (Dec-Dec)
1970 1,038.3 4,269.9 0.2% 4.9 9.4 38.8 5.6 1971 1,126.8 4,413.3 3.4% 5.9 10.0 40.5 3.3 1972 1,237.9 4,647.7 5.3% 5.6 8.9 41.8 3.4 1973 1,382.3 4,917.0 5.8% 4.9 10.5 44.4 8.7 1974 1,499.5 4,889.9 -0.6% 5.6 10.7 49.3 12.3 1975 1,637.7 4,879.5 -0.2% 8.5 10.6 53.8 6.9 1976 1,824.6 5,141.3 5.4% 7.7 9.4 56.9 4.9 1977 2,030.1 5,377.7 4.6% 7.1 8.7 60.6 6.7 1978 2,293.8 5,677.6 5.6% 6.1 8.9 65.2 9.0 1979 2,562.2 5,855.0 3.1% 5.8 8.8 72.6 13.3 1980 2,788.1 5,839.0 -0.3% 7.1 9.8 82.4 12.5 1981 3,126.8 5,987.2 2.5% 7.6 10.6 90.9 8.9 1982 3,253.2 5,870.9 -1.9% 9.7 10.9 96.5 3.8 1983 3,534.6 6,136.2 4.5% 9.6 8.7 99.6 3.8 1984 3,930.9 6,577.1 7.2% 7.5 10.2 103.9 3.9 1985 4,217.5 6,849.3 4.1% 7.2 8.2 107.6 3.8 1986 4,460.1 7,086.5 3.5% 7.0 7.6 109.6 1.1 1987 4,736.4 7,313.3 3.2% 6.2 6.5 113.6 4.4 1988 5,100.4 7,613.9 4.1% 5.5 6.9 118.3 4.4 1989 5,482.1 7,885.9 3.6% 5.3 6.6 124.0 4.6 1990 5,800.5 8,033.9 1.9% 5.6 6.5 130.7 6.1 1991 5,992.1 8,015.1 -0.2% 6.8 7.0 136.2 3.1 1992 6,342.3 8,287.1 3.4% 7.5 7.3 140.3 2.9 1993 6,667.4 8,523.4 2.9% 6.9 5.8 144.5 2.7 1994 7,085.2 8,870.7 4.1% 6.1 5.2 148.2 2.7 1995 7,414.7 9,093.7 2.5% 5.6 5.2 152.4 2.5 1996 7,838.5 9,433.9 3.7% 5.4 4.9 156.9 3.3 1997 8,332.4 9,854.3 4.5% 4.9 4.6 160.5 1.7 1998 8,793.5 10,283.5 4.4% 4.5 5.3 163.0 1.6 1999 9,353.5 10,779.8 4.8% 4.2 3.1 166.6 2.7 2000 9,951.5 11,226.0 4.1% 4.0 2.9 172.2 3.4 2001 10,286.2 11,347.2 1.1% 4.7 2.7 177.1 1.6 2002 10,642.3 11,553.0 1.8% 5.8 3.5 179.9 2.4 2003 11,142.1 11,840.7 2.5% 6.0 3.5 184.0 1.9 2004 11,867.8 12,263.8 3.6% 5.5 3.4 188.9 3.3 2005 12,638.4 12,638.4 3.1% 5.1 1.4 195.3 3.4 2006 13,398.9 12,976.2 2.7% 4.6 2.4 201.6 3.2 2007 14,077.6 13,254.1 2.1% 4.6 1.7 207.3 2.8% 2008 14,441.4 13,312.2 0.4% 5.8 2.7 215.3 3.8% 2009 14,256.3 12,987.4 -2.4% 9.3 4.3 214.5 -0.4%
Sources: Bureau of Economic Analysis; U.S. Department of Labor (http://www.bea.gov/bea/dn/nipaweb/index.asp; http://www.bls.gov/data/home.htm)
Savings & Investment • 103
Interest Rates and Bond Yields(Percent Per annum as of Year end)
3-Month 3-Year 10-Year Bank Average T-Bills, Treasury Treasury AAA BAA Hi-Grade Prime Funds Auction Bonds Bonds Corps.* Corps.* Munis.** Rate Rate
1975 5.84 7.49 7.99 8.83 10.61 6.89 7.86 5.821976 4.99 6.77 7.61 8.43 9.75 6.49 6.84 5.041977 5.27 6.69 7.42 8.02 8.97 5.56 6.83 5.541978 7.22 8.29 8.41 8.73 9.49 5.90 9.06 7.931979 10.04 9.71 9.44 9.63 10.69 6.39 12.67 11.191980 11.51 11.55 11.46 11.94 13.67 8.51 15.27 13.361981 14.03 14.44 13.91 14.17 16.04 11.23 18.87 16.381982 10.69 12.92 13.00 13.79 16.11 11.57 14.86 12.261983 8.63 10.45 11.10 12.04 13.55 9.47 10.79 9.091984 9.58 11.89 12.44 12.71 14.19 10.15 12.04 10.23
1985 7.48 9.64 10.62 11.37 12.72 9.18 9.93 8.101986 5.98 7.06 7.68 9.02 10.39 7.38 8.33 6.811987 5.82 7.68 8.39 9.38 10.58 7.73 8.21 6.661988 6.69 8.26 8.85 9.71 10.83 7.76 9.32 7.571989 8.12 8.55 8.49 9.26 10.18 7.24 10.87 9.211990 7.51 8.26 8.55 9.32 10.36 7.25 10.01 8.101991 5.42 6.82 7.86 8.77 9.80 6.89 8.46 5.691992 3.45 5.30 7.01 8.14 8.98 6.41 6.25 3.521993 3.02 4.44 5.87 7.22 7.93 5.63 6.00 3.021994 4.29 6.27 7.09 7.97 8.63 6.19 7.15 4.21
1995 5.51 6.25 6.57 7.59 8.20 5.95 8.83 5.831996 5.02 5.99 6.44 7.37 8.05 5.75 8.27 5.301997 5.07 6.10 6.35 7.26 7.86 5.55 8.44 5.461998 4.81 5.14 5.26 6.53 7.22 5.12 8.35 5.351999 4.66 5.49 5.65 7.04 7.87 5.43 8.00 4.972000 5.85 6.22 6.03 7.62 8.36 5.77 9.23 6.242001 3.45 4.09 5.02 7.08 7.95 5.19 6.91 3.882002 1.62 3.10 4.61 6.49 7.80 5.05 4.67 1.672003 1.02 2.10 4.01 5.67 6.77 4.73 4.12 1.132004 1.38 2.78 4.27 5.63 6.39 4.63 4.34 1.35
2005 3.16 3.93 4.29 5.24 6.06 4.29 6.19 3.222006 4.73 4.77 4.80 5.59 6.48 4.42 7.96 4.972007 4.41 4.35 4.63 5.56 6.48 4.42 8.05 5.022008 1.48 2.24 3.66 5.64 7.45 4.80 5.09 1.922009 0.05 1.38 3.59 5.26 6.37 4.32 3.25 0.12
*as rated by Moody's**as rated by Standard and Poor'sSource: Federal Reserve Board (http://www.federalreserve.gov/Releases/H15/)
104 Savings & Investment • 105
Household Saving Rates of Major Nations(Percent of Disposable Household income)
U.S. Canada France Germany Italy Japan UK
1985 9.2 15.8 9.0 12.1 28.8 18.5 9.8
1986 8.2 13.4 8.1 12.9 28.9 16.5 8.0
1987 7.0 11.9 6.4 12.9 24.6 13.9 6.4
1988 7.3 12.3 8.0 13.2 24.0 13.5 4.9
1989 7.1 13.0 8.8 12.5 24.1 13.6 6.7
1990 7.0 13.0 9.5 13.7 24.8 13.9 8.0
1991 7.3 13.3 10.6 12.9 21.4 15.0 10.3
1992 7.3 13.0 11.4 12.7 20.2 14.6 11.7
1993 5.8 11.9 12.3 12.1 19.5 14.2 10.8
1994 5.2 9.5 11.6 11.4 18.1 13.3 9.3
1995 5.2 9.2 12.8 11.0 17.0 12.6 10.3
1996 4.9 7.0 11.9 10.5 17.9 10.5 9.4
1997 4.6 4.9 12.8 10.1 15.1 10.3 9.6
1998 5.3 4.9 12.4 10.1 11.4 11.3 7.4
1999 3.1 4.0 12.1 9.5 10.2 10.0 5.2
2000 2.9 4.7 11.9 9.2 8.4 8.6 4.7
2001 2.7 5.2 12.7 9.4 10.5 5.0 6.0
2002 3.5 3.5 13.9 9.9 11.2 4.9 4.8
2003 3.5 2.6 12.6 10.3 10.3 3.9 5.1
2004 3.4 3.2 12.6 10.4 10.2 3.5 3.7
2005 1.4 2.1 11.7 10.5 9.9 3.9 3.9
2006 2.4 3.5 11.6 10.5 9.1 3.8 2.9
2007 1.7 2.5 12.2 10.8 8.2 3.3 2.2
2008 2.7 3.7 11.8 11.2 8.6 2.7 1.7
2009 3.9 4.3 13.5 11.7 10.7 2.8 5.3
2010(proj.) 4.0 3.3 13.7 12.3 10.5 2.6 5.8
2011(proj.) 4.0 3.0 13.7 12.2 10.5 3.6 5.5
Source: OECD Economic Outlook (http://www.oecd.org)
Savings & Investment • 105
Individual Retirement Accounts (IRAs)(iRa Deductions Claimed)
Number of Amount Put in IRA Tax Returns ($ Billions)
1985 16,205,846 38.2
1986 15,535,531 37.8
1987 7,318,727 14.1
1988 6,361,421 11.9
1989 5,824,914 10.8
1990 5,223,737 9.9
1991 4,666,078 9.0
1992 4,477,720 8.7
1993 4,385,422 8.5
1994 4,319,153 8.4
1995 4,300,722 8.3
1996 4,374,281 8.6
1997 4,068,958 8.7
1998 3,868,017 8.2
1999 3,687,149 7.9
2000 3,505,032 7.5
2001 3,448,457 7.4
2002 3,277,671 9.5
2003 3,418,494 10.0
2004 3,330,763 10.0
2005 3,256,066 12.0
2006 3,286,760 12.8
2007 3,370,132 13.2
2008* 2,783,721 11.9
* Preliminary Source: IRS, Statistics of Income Bulletin (http://www.irs.gov)
106 Savings & Investment • 107
401(k) Plan Assets($ Billions)
1985 1441986 1831987 2151988 2771989 357
1990 3851991 4401992 5531993 6161994 675
1995 8641996 1,0611997 1,2641998 1,5411999 1,790
2000 1,7252001 1,6822002 1,5732003 1,9222004 2,1892005 2,3962006* 2,7682007* 2,9822008* 2,2752009* 2,754
* Estimated
Total 401(k) Plan Assets$ Billions
0
500
1000
1500
2000
2500
3000
3500
'09‘07‘05‘03‘01‘99‘97‘95‘93‘91‘89‘87‘85
215 277 357 385 440553 616 675
8641,061
1,264
1,5411,790 1,725 1,682
2,189
1,922
1,573
2,396
3,047
2,350
2,7542,770
144 183
Source: Investment Company Institute
Savings & Investment • 107
U.S. Retirement Assets($ Billions)
Private Life State Total Total Pension Insurance & Local Federal Pension IRA Retirement Funds* Companies** Gov't Gov't Assets Assets Assets
1985 1,226 260 405 172 2,064 241 2,3051986 1,284 328 481 202 2,294 329 2,6231987 1,352 349 537 233 2,470 404 2,8741988 1,405 436 603 268 2,711 468 3,1791989 1,629 496 706 304 3,135 546 3,6811990 1,627 570 739 340 3,276 637 3,9131991 1,929 621 862 382 3,794 776 4,5701992 2,036 693 948 426 4,103 873 4,9761993 2,283 775 1,054 468 4,580 993 5,5731994 2,436 797 1,107 512 4,851 1,056 5,907
1995 2,899 881 1,344 541 5,665 1,288 6,9531996 3,224 954 1,529 606 6,313 1,467 7,7801997 3,713 1,086 1,819 659 7,277 1,728 9,0051998 4,144 1,248 2,062 716 8,170 2,150 10,3201999 4,594 1,428 2,361 774 9,157 2,651 11,8082000 4,468 1,466 2,335 797 9,065 2,629 11,6942001 4,048 1,495 2,254 860 8,656 2,619 11,2752002 3,677 1,605 1,930 894 8,106 2,533 10,6392003 4,520 1,803 2,399 959 9,681 2,993 12,6742004 4,915 2,028 2,626 1,023 10,592 3,299 13,8912005 5,341 2,197 2,763 1,072 11,374 3,652 15,0262006 6,048 2,332 3,175 1,141 12,696 4,207 16,9032007 6,425 2,438 3,316 1,197 13,376 4,747 18,1232008 4,636 2,151 2,425 1,221 10,432 3,579 14,0112008 5,493 2,222 2,766 1,324 11,806 4,230 16,036
* Private pension funds include 401k & 403b plans. ** Annuity reserves held by life insurance companies.
U.S. Retirement Assets$ trillions
0
2
4
6
8
10
12
14
16
18
'09 '07 '05 '03 '01'99'97'95'93'91'89'87'85
2.9 3.2 3.7 3.9 4.6 5.0 5.6 5.97.0
7.89.0
10.311.8 11.7 11.3
10.5
12.614.0
14.6
18.1
14.0
16.016.9
2.3 2.6
IRAsPensions
Source: Federal Reserve Flow of Funds Accounts
108 Savings & Investment • 109
Private Pension Fund Assets Financial Assets ($ Billions) Total Financial Assets (%)
Defined Defined Defined Defined Benefit* Contribution** Total Benefit Contribution
1985 795 431 1,226 64.9 35.1
1986 816 468 1,284 63.6 36.4
1987 803 548 1,352 59.4 40.6
1988 813 592 1,405 57.9 42.1
1989 922 708 1,629 56.6 43.4
1990 900 727 1,627 55.3 44.7
1991 1,052 877 1,929 54.5 45.5
1992 1,080 956 2,036 53.0 47.0
1993 1,195 1,088 2,283 52.3 47.7
1994 1,276 1,160 2,436 52.4 47.6
1995 1,466 1,436 2,902 50.5 49.5
1996 1,590 1,634 3,224 49.3 50.7
1997 1,764 1,949 3,713 47.5 52.5
1998 1,908 2,236 4,144 45.2 54.8
1999 2,075 2,519 4,594 45.3 54.7
2000 1,979 2,489 4,468 44.3 55.7
2001 1,810 2,238 4,048 44.7 55.3
2002 1,639 2,038 3,677 44.6 55.4
2003 1,995 2,526 4,520 44.1 55.9
2004 2,132 2,783 4,915 43.4 56.6
2005 2,281 3,021 5,302 43.0 57.0
2006 2,530 3,481 6,010 42.1 57.9
2007 2,666 3,725 6,391 41.7 58.3
2008 1,931 2,670 4,600 42.0 58.0
2009 2,121 3,336 5,457 38.9 61.1
* Defined benefit plans invest in a variety of tangible and financial assets, but they may not invest more than 10% of the fund's assets in firm (employer) securities.
**Under a defined contribution plan, the employer or the employee, or both, contributes to the employee account.
Source: Federal Reserve Flow of Funds Accounts (http://www.federalreserve.gov/releases/Z1/; Supplemental Tables L.118.b and L.118.c)
Savings & Investment • 109
Investment Mix of All Private Pension Fund Assets($ Billions)
Mutual Cash Other Total Equity Bonds Funds Items Assets Assets
1985 516 307 11 130 262 1,226
1986 524 307 12 147 294 1,284
1987 533 314 20 145 341 1,351
1988 515 342 23 157 368 1,405
1989 636 394 33 188 379 1,630
1990 606 438 41 181 361 1,627
1991 806 460 66 195 401 1,929
1992 874 486 96 178 402 2,036
1993 1,014 522 142 183 422 2,283
1994 1,014 568 206 184 463 2,434
1995 1,278 584 327 195 505 2,889
1996 1,445 571 412 222 556 3,207
1997 1,667 616 570 246 591 3,689
1998 1,948 587 668 280 622 4,105
1999 2,081 679 898 274 639 4,571
2000 1,915 588 946 289 617 4,355
2001 1,562 600 862 303 590 3,917
2002 1,559 548 832 200 408 3,547
2003 2,097 642 1,127 202 475 4,542
2004 2,334 620 1,278 204 480 4,915
2005 2,542 668 1,399 213 480 5,302
2006 2,875 727 1,658 219 533 6,010
2007 2,863 834 1,848 226 620 6,391
2008 1,665 914 1,230 246 546 4,600
2009 1,946 949 1,619 263 680 5,457
* Source: Federal Reserve Flow of Funds Accounts (http://www.federalreserve.gov/releases/Z1/; Supplemental Tables L.118.b and L.118.c)
110 Savings & Investment • 111
Investment Mix of Defined Benefit Plan Assets($ Billions)
Mutual Cash Other Total Equity Bonds Funds Items Assets Assets
1985 336 238 6 71 145 7961986 348 228 5 83 152 8161987 322 225 8 89 159 8031988 301 257 7 86 163 8131989 359 301 7 92 163 9221990 341 335 7 82 134 9001991 459 346 11 92 144 1,0521992 485 364 16 80 136 1,0801993 556 387 22 87 144 1,1951994 560 427 39 92 158 1,276
1995 689 449 69 100 160 1,4661996 764 435 91 120 180 1,5901997 844 472 122 137 188 1,7641998 949 448 157 155 199 1,9081999 1,006 537 199 135 197 2,0752000 1,076 420 236 97 150 1,9792001 1,061 401 181 60 107 1,8102002 918 366 189 52 114 1,6392003 1,171 440 197 55 131 1,9952004 1,294 430 234 50 124 2,132
2005 1,393 463 253 58 114 2,2812006 1,521 497 246 59 156 2,4792007 1,454 587 339 56 231 2,6662008 777 648 228 68 209 1,9302009 811 688 286 70 266 2,121
Investment Mix of Defined Benefit Plan Assets2009 = $2.12 Trillion
41.3
Equity38%
Bonds32%
Mutual Funds14%
Cash Items3%
Other13%
Source: Federal Reserve Flow of Funds Accounts (http://www.federalreserve.gov/releases/Z1/; Supplemental Tables L.118.b and L.118.c)
Savings & Investment • 111
Investment Mix of Defined Contribution Plan Assets($ Billions)
mutual Cash Other total equity Bonds Funds items assets assets
1985 180 69 5 60 118 4311986 175 80 7 64 142 4681987 210 89 12 55 182 5481988 215 85 17 71 205 5921989 277 93 26 96 216 7081990 265 103 34 99 227 7271991 348 114 55 103 257 8771992 389 122 81 98 266 9561993 459 135 120 97 278 1,0881994 454 141 167 92 307 1,161
1995 568 135 289 101 341 1,4331996 639 137 382 112 365 1,6341997 760 142 538 123 387 1,9491998 920 156 633 141 385 2,2361999 960 169 858 143 390 2,5192000 895 166 895 155 378 2,4892001 848 158 782 131 320 2,2382002 671 182 743 148 294 2,0382003 926 180 929 147 344 2,5262004 1,039 190 1,045 154 356 2,783
2005 1,149 205 1,146 156 366 3,0212006 1,354 229 1,361 160 376 3,4812007 1,410 247 1,510 169 389 3,7252008 878 266 1,002 178 336 2,6602009 1,134 261 1,332 194 414 3,336
Investment Mix of Defined Contribution Plan Assets2009 = $3.3 Trillion
41.3
Equity34%
Bonds8%
Mutual Funds40%
Cash Items6%
Other12%
Source: Federal Flow of Funds Accounts.
112 Savings & Investment • 113
Income Sources for Those Aged 65 or Older, 2009
Percent Share of Percent Receiving Income Aggregate Income from Specified Source
Social Security 39.0% 85.8% Earnings 26.0% 20.1% Benefits other than Social Security* 19.5% 34.2% Asset Income 12.8% 54.0% Other 2.1% 6.1%
* Includes private pensions and annuities, government employee pensions, Railroad Retirement, and IRA, Keogh and 401(k) payments.
Source: Social Security Administration, Income of the Aged Chartbook, 2009
Income Sources for Those Aged 65 or Older, 2009(Percent Share of aggregate income)
41.3
Social Security39%
Pensions20% Earnings
26%
Asset Income13%
Other2%
Savings & Investment • 113
Indi
vidu
al R
etir
emen
t Acc
ount
(IR
A) A
sset
sby
typ
e of
Fin
anci
al in
stitu
tion
1999
2000
2001
2002
2003
2004
2005
2006
p20
07 p
2008
*20
09*
($ B
illio
ns)
tota
l iRa
ass
ets
2,65
12,
629
2,61
92,
533
2,99
33,
299
3,65
24,
207
4,78
43,
579
4,23
0
Bank
and
Thri
ft D
epos
its**
244
252
255
263
268
269
278
313
340
391
431
Life
Insu
ranc
e C
ompa
nies
***
202
202
211
268
285
282
308
318
325
310
303
mut
ual F
unds
1,27
71,
249
1,17
61,
044
1,32
71,
521
1,70
02,
015
2,28
81,
585
1,95
3Se
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897
895
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71,
366
1,56
21,
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1,29
31,
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Brok
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(Per
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age
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otal
iRa
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Bank
and
Thri
ft D
epos
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9.2
9.6
9.7
10.4
9.0
8.2
7.6
7.4
7.1
10.9
10.2
Life
insu
ranc
e C
ompa
nies
7.6
7.7
8.1
10.6
9.5
8.5
8.4
7.6
6.8
8.7
7.2
mut
ual F
unds
48.2
47.5
44.9
41.2
44.3
46.1
46.5
47.9
47.8
44.3
46.2
Secu
ritie
s Hel
d in
35.0
35.3
37.3
37.8
37.2
37.2
37.4
37.1
38.3
36.1
36.5
Brok
erag
e a
ccou
nts
p Pr
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inar
y*E
stim
ated
**Ba
nk a
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clude
Keo
gh d
epos
its.
*** L
ife in
sura
nce c
ompa
ny IR
A a
sset
s are
ann
uitie
s held
by
IRA
s, ex
cludi
ng a
nnui
ty m
utua
l fun
d IR
A a
sset
s, w
hich
are
inclu
ded
in m
utua
l fun
ds.
Sour
ce: I
nves
tmen
t Com
pany
Insti
tute
Fact Book 2010
SIFM
A F
act Bo
ok 2
010
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