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THE ECONOMICS OF THE PRIVATE MARKET

Appendix D. Historical Data on Issuance of Private Debt

Table D.1 displays time series of gross issuance of private placements and public issues of debt since 1935, drawn from historical databases at the Federal Reserve Board. For the private placements the sources of the data are as follows: Before 1978, the source is the Securities and Exchange Commission. In 1978, the Federal Reserve began computing estimates, for use in the flow of funds accounts, of gross private issuance based on data obtained from IDD Information Services. The table reports these estimates for 1978 and thereafter.  Data on private issuance have been unavailable from the SEC since 1982. For the years that both series are available, the series do not agree.  That derived from IDD data is larger than that estimated by the SEC, especially in the early 1980s. We do not claim that the series in table D.1 are accurate (indeed, they are almost certainly inaccurate as some private transactions are never reported anywhere), nor do we have any information about systematic variation in estimation errors over time.

The public and private gross issuance series are plotted in chart D.1 on a log scale, and the ratio of private to public issuance is plotted in chart D.2.  The reasons for the variations in the relative importance of the private and public markets are a subject for future research.

D. 1.  Corporate bond issuance:  public offerings and private placements, 1935-921
Billions of dollars, except as noted

Year Total Public

Private

Amount Percentage of total
1935 2.50 2.12 .39 15.4
1936 4.40 4.03 .37 8.4
1937 1.95 1.62 .33 16.8
1938 2.73 2.04 .69 25.3
1939 2.68 1.98 .70 26.2
         
1940 3.15 2.39 .76 24.1
1941 3.20 2.39 .81 25.4
1942 1.33 .92 .41 30.9
1943 1.36 .99 .37 27.1
1944 3.45 2.67 .78 22.7
1945 5.86 4.86 1.00 17.1
1946 6.75 4.88 1.86 27.6
1947 7.18 5.04 2.15 29.9
1948 8.98 5.97 3.01 33.5
1949 4.78 2.32 2.45 51.4
         
1950 4.92 2.36 2.56 52.0
1951 5.57 2.25 3.33 59.7
1952 7.60 3.65 3.96 52.0
1953 7.08 3.86 3.23 45.6
1954 7.49 4.01 3.48 46.5
1955 7.42 4.12 3.30 44.5
1956 8.00 4.23 3.78 47.2
1957 9.96 6.12 3.84 38.5
1958 9.65 6.33 3.32 34.4
1959 7.19 3.56 3.63 50.5
         
1960 8.08 4.81 3.28 40.5
1961 9.42 4.70 4.72 50.1
1962 8.97 4.44 4.53 50.5
1963 10.86 4.71 6.14 56.6
1964 10.87 3.62 7.24 66.7
1965 13.72 5.57 8.15 59.4
1966 15.56 8.02 7.54 48.5
1967 21.96 14.99 6.96 31.7
1968 17.38 10.73 6.65 38.3
1969 18.35 12.73 5.61 30.6
         
1970 29.03 24.37 4.66 16.0
1971 30.06 23.29 6.77 22.5
1972 26.13 17.43 8.71 33.3
1973 21.05 13.24 7.80 37.1
1974 32.06 25.90 6.16 19.2
1975 43.22 32.58 10.64 24.7
1976 42.67 26.45 16.22 38.0
1977 45.22 24.07 21.15 46.8
1978 39.57 19.82 19.76 49.9
1979 44.05 25.81 18.24 41.4
         
1980 55.20 41.62 13.57 24.6
1981 52.54 38.33 14.21 27.0
1982 59.58 44.28 15.30 25.7
1983 68.27 47.14 21.13 30.9
1984 110.41 74.08 36.32 32.9
1985 165.76 119.56 46.20 27.9
1986 313.36 232.60 80.76 25.8
1987 299.75 207.68 92.08 30.7
1988 328.86 201.16 127.70 38.8
1989 297.12 179.70 117.42 39.5
         
1990 275.77 188.78 86.99 31.5
1991 361.97 287.04 74.93 20.7
1992 443.55 377.69 65.86 14.8

D.1.  Gross issuance of publicly offered and privately placed bonds

Sources:  SEC and IDD Information Services.

D.2.  Ratio of privately placed bonds to total bonds

Sources:  SEC and IDD Information Services.

Appendix E.  A Review of the Emperical Evidence on Covenants and Renegotiation

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