KUALA LUMPUR (Jan 31): Global bond issuance is expected to increase over the 2019 total by 3.8% in 2020, according to S&P Global Ratings Research.

In a note titled "Global Financing Conditions: Bond Issuance Is Expected To Grow 3.8% In 2020"released today, the research agency said issuance is expected to remain resilient in the face of potential disruptors and a slowing global economy, at least through the majority of 2020.

S&P Global Ratings Performance Analytics head Nick Kraemer said most of S&P Global’s main assumptions for 2020 have remained intact since its last update.

"Economic growth projections for 2020 remain positive but muted, while central bank policies should continue to foster favorable financing conditions within the private sector,” said Kraemer.

Kraemer said lingering sources of market volatility appear contained compared to last year.

He said potential disruptors to financial markets persist heading into an election year in the U.S., but the U.S.-China trade dispute is currently in a "truce" stage, while the British government appears set to hold a more consistent position during this year's Brexit negotiations with the European Commission.

The ratings agency said global new bond issuance in 2019 totaled $6.86 trillion, up 17% from 2018.

It said every sector experienced an increase.

Kraemer said the international public finance sector led with an increase of 54%, to $743.5 billion.

“Unexpected at the beginning of the year was the stellar growth in U.S. public finance--up 24.4% to $421.7 billion.

“Global nonfinancial issuance (including infrastructure) hit an all-time high of $2.4 trillion, up 19.4%.

“Financial services also hit a new annual high, at $2.16 trillion, up 10.6% after a strong fourth quarter. Finally, global structured finance rounded out the list, up 6.2% at $1.1 trillion,” he said.