Alexander Hamilton Fund & Hamilton Bond Markets

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 Capital is critical to corporations for running day-to-day business operations or for various business purposes. For instance, earlier stage companies need additional capital to grow to the next stage in the business life cycle. Or companies may need capital to expand organically or via acquisition, whether it be for product or regional diversification. Individuals or companies – whether at the startup level or an established firm – need capital to turn ideas into usable innovations and often new, sustainable enterprises. Governments need capital to operate their country, state, or city, as well as invest in infrastructure projects such as bridges, roadways, or schools. Therefore, capital is an integral component supporting job creation, economic development, and prosperity, and plays a crucial role in a country’s economy.

Capital markets facilitate the transfer of capital from those seeking a return (investors) to those who need capital to grow their enterprises (issuers). Capital markets, put simply, are the way we connect providers of capital with users of capital. These relationships are facilitated by financial institution intermediaries, which play a critical role in making capital markets work. Efficient capital markets allow capital users to receive lower cost funding over time while allowing investors to identify appropriate opportunities to deploy their capital.   (SIFMA).

US Treasury Securities Statistics

SIFMA Research tracks U.S. Treasury market issuance (gross and net), average daily trading volume (primary dealer), outstanding and yield data, as well as information on holders of UST. All data is broken out by tenor and is downloadable by monthly, quarterly and annual statistics including trend analysis.

YTD statistics include:

• Issuance (as of March) $7.3 trillion, +1.7% Y/Y
• Trading (as of March) $1,048.0 billion ADV, +17.9% Y/Y
• Outstanding (as of March) $28.6 trillion, +6.1% Y/Y

https://fiscaldata.treasury.gov/americas-finance-guide/national-debt/

 The Caribbean bond market size is difficult to pinpoint precisely without specific, up-to-date data. However, it's part of the larger Latin American and Caribbean (LAC) market, which experienced a rebound in 2023 after a 2022 low. In 2023, LAC issuers placed $89 billion of bonds in international markets, a significant increase from the previous year but still lower than the average issuance in the 2019-2021 period.

Here's a more detailed breakdown:

LAC Market Rebound:

The LAC bond market saw a 40% increase in international bond issuances in 2023 compared to 2022, reaching $89 billion.

Sustainable Debt Market:

The region also saw a significant increase in sustainable debt issuances, with a 40% increase in green, social, and sustainability-linked bonds.

Local Currency Issuance:

The share of local currency issuances within the region's international bonds jumped to 19.5% in 2023, up from 8% in 2022.

Corporate Participation:

Corporate sector participation rebounded in the first ten months of 2024, with 57% of total issuances coming from corporate sources, including private banks, state-owned enterprises, and supranational entities.

Debt Ratios:

In 2020, the outstanding level of marketable public debt in the LAC region increased to 25% of GDP, and to more than 37% in the six largest economies.

Caribbean & Latin America Debt Market

According to the Securities Industry and Financial Markets Association (SIFMA), the global bond market was worth $140.7 trillion at the end of 2023, compared to the $115 trillion global equity market cap. 

 Key Points

• The global bond market was valued at $140.7 trillion in 2023, larger than the global stock market. 
• Bonds offer more stability than stocks but generally provide lower returns.
• Understanding bonds is vital for investors since they influence both stock markets and economic dynamics.