How much bigger is the fixed-income market than the equity market?
Fixed-income markets include not only publicly traded securities, such as commercial paper, notes, and bonds, but also non-publicly traded loans. Although they usually attract less attention than equity markets, fixed-income markets are more than three times the size of global equity markets.
Outstanding (as of 4Q21) $52.9 trillion, +5.5% Y/Y.
The U.S. fixed income markets are the largest in the world, comprising 39.3% of the $138.6 trillion securities outstanding across…
That's partly because bonds have a range of maturities, coupons, and credit ratings, which makes the bond market more complex than the stock market where most companies tend to just have one class of stock available to the public.
While equity markets have the potential of giving higher returns in the short run, the returns are not guaranteed and thus increases the risk. The fixed income markets, on the other hand, offer stable returns and thus lower risk, but the returns might also be modest.
Some sectors appeal more to institutional investors, such as banks and pension funds. Others, including the municipal bond market, attract more retail investors. The global fixed-income market was worth over $122.6 trillion as of 2Q22.
Data as of Q2 2023. Numbers may not total 100 due to rounding. Today, U.S. equity markets total over $46.2 trillion in market capitalization. Compared to other rich nations, U.S. stocks have often outperformed over the last several decades.
Bonds and bank loans form what is known as the credit market. The global credit market in aggregate is about three times the size of the global equity market. Bank loans are not securities under the Securities and Exchange Act, but bonds typically are and are therefore more highly regulated.
New York Stock Exchange (NYSE), USA
New York Stock Exchange (NYSE) is the world's largest stock exchange located at 11 Wall Street, New York City, USA. NYSE has a market capitalisation of $26.2 trillion (world's biggest stock exchange) and has more than 2400 companies listed.
New York Stock Exchange
But it has remained the largest stock exchange in the world by market capitalisation ever since the end of World War I, when it overtook the London Stock Exchange.
Is fixed income market bigger than equity?
Fixed-income markets include not only publicly traded securities, such as commercial paper, notes, and bonds, but also non-publicly traded loans. Although they usually attract less attention than equity markets, fixed-income markets are more than three times the size of global equity markets.
Size of the market
The total market capitalization of all publicly traded stocks worldwide rose from US$2.5 trillion in 1980 to US$93.7 trillion at the end of 2020. As of 2016, there are 60 stock exchanges in the world.
The US has the largest bond market in the world.
Difference Between Equity and Fixed Income. Equity income refers to making an income by trading shares and securities on stock exchanges, which involves a high risk on return concerning price fluctuations. Fixed income refers to income earned on deposits that give fixed making like interest and are less risky.
Both equity and fixed-income products are financial instruments that can help investors achieve their financial goals. Equity investments generally consist of stocks or stock funds, while fixed income securities generally consist of corporate or government bonds.
When investing in stocks, you have a greater chance of higher gains compared to fixed income products. However, there's also a lot more risk involved. There are zero guarantees with equity markets, so you could lose your initial investment if you choose the wrong products.
Weekly fixed income update highlights
Treasuries and most spread sectors experienced negative total returns. Senior loans had positive returns, and IG corporates, CMBS and ABS outperformed versus similar-duration Treasuries. Municipal bond yields ended the week essentially unchanged.
According to Figure 2.9 Treasury debt is the largest component of the fixed-income market.
The investments market size has grown strongly in recent years. It will grow from $3964.52 billion in 2023 to $4254.18 billion in 2024 at a compound annual growth rate (CAGR) of 7.3%.
Leading the equities exchange industry with the largest IPO in the first half of 2023, the NYSE continues to represent the best of the best.
What is the US government biggest financial asset?
The US Government's Biggest Financial Asset: Student Debt.
| Global Rank | Stock Exchange | Country |
|---|---|---|
| 1 | NYSE | 🇺🇸 U.S. |
| 2 | Nasdaq | 🇺🇸 U.S. |
| 3 | Euronext | 🇳🇱 Netherlands |
| 4 | Shanghai Stock Exchange | 🇨🇳 China |
The debt market, which includes all bonds and other debt instruments, is significantly larger than the equity market. This is because governments and companies often issue more debt than equity to finance their operations.
There are many adages to help you determine how to allocate stocks and bonds in your portfolio. One says that the percentage of stocks in your portfolio should equal 100 minus your age. So, if you're 30, such a portfolio would contain 70% stocks and 30% bonds (or other safe investments).
Fitch Ratings estimates $759 billion, or 14%, of the $5.6 trillion U.S. investment-grade bond market will mature in 2024 and 2025. According to our assessment, $332 billion is due in 2024 and $427 billion is due in 2025 as of YE 2023.
