The Fixed Income Market Annual Report 2024, prepared by the Market Research department from BME, presents a comprehensive analysis of the international financial environment, highlighting key events and the most relevant trends that defined the year in this field. Some of the report’s main highlights include:
World Economy in 2024
Global GDP growth in 2024 has remained stable, at slightly above 3%, although with significant regional divergences. This stability has contrasted with a global context marked by high uncertainty in geopolitical affairs and in fiscal and trade policies.
Spain, as in 2022 and 2023, has once again been the leading large economy in the Eurozone in terms of positive contribution to the EU Area’s growth, with a GDP increase of 3.2% in 2024 — more than four times the figure for the Eurozone as a whole. This growth has been driven by tourism, strong employment and private consumption, and a slight recovery in investment fueled by the arrival of NextGenerationEU funds.
Fixed Income Markets
Despite short-term benchmark interest rate cuts by central banks, yields on medium- and long-term government bonds in major global markets have moved slightly upward — and therefore prices downward — but within a narrower range than in previous years.
The most notable increase in yields occurred in the final third of the year, especially in the United States, driven by stronger-than-expected economic data and concerns over a potential rise in debt issuance following the November elections. Meanwhile, global corporate fixed income markets have generally experienced a year of stability and a narrowing of spreads relative to government debt.
Spanish Primary Public Debt Market
In the Spanish Government and corporate debt markets, high issuance levels were reached in 2024, although they were lower than the previous year. In the markets managed by BME the total financing provided to both the public and private sectors amounted to €376.8 billion, representing an 11% decrease compared to the previous year.
Primary Corporate Fixed Income Market
The year 2024 marks the first full year in which the new Securities Markets and Investment Services Act (LMVSI) is in effect. This legislation modifies the verification and listing procedures for fixed-income securities on Regulated Markets, aiming to provide Spanish fixed income markets with a more agile, efficient, and competitive operating framework.
To take on the new responsibilities, BME’s fixed income Regulated Market has developed new regulations that outline the timeline and required documentation for listing on the AIAF Market. This effort has also been used to align the documentation with what is needed for registering the issuance in Iberclear, Spain’s central securities depository.
The volume of Spanish private debt issued and listed on BME’s regulated fixed-income market in 2024 reached €75.597 billion, a 34.2% decrease compared to 2023, largely due to expectations of interest rate cuts, which led many companies to delay their debt issuance plans in anticipation of better conditions.
Fixed Income Alternative Market (MARF)
In 2024, the volume of issuances and listings on the MARF reached €16.583 billion, representing an 8.1% increase over the previous year. Notable highlights of the year include the sharp rise in securitization issuances (+154.4%), covered bonds (+150%), and bonds and debentures (+68.8%).
The outstanding balance at year-end stood at €8.7 billion, reflecting a 10.9% increase compared to the end of the previous year. Particularly noteworthy were outstanding commercial paper issuances totaling €4.9 billion (+27.6%), distributed across 567 tranches issued under commercial paper programs. The remaining balance consists of bond issues, mortgage covered bonds, securitization issues and preferred securities spread over 66 issues.
Sustainability
Financing through bond issuances aimed at promoting sustainable development, both environmental and social, rebounded for the second consecutive year in 2024, after the slowdown experienced in 2022.
In 2024, green, social, and sustainable bond issuances in Spain increased by 14.1%, reaching €24.151 billion, according to data published by the Observatory for Sustainable Finance (OFISO). The recovery and overall issuance volume in 2024 was led by green bonds, totaling €18.758 billion (+22.8%), followed by sustainable bonds at €3.595 billion (+9.1%).
Visit the following link to read the 2024 Annual Fixed Income Report: Fixed Income Annual Report 2024 | BME Exchange