Printer Friendly

LAST YEAR 'GREAT' FOR STOCKS, BONDS, SIA SAYS, AS UNDERWRITINGS OF EQUITY AND DEBT BOTH SURGED

 LAST YEAR 'GREAT' FOR STOCKS, BONDS, SIA SAYS, AS UNDERWRITINGS
 OF EQUITY AND DEBT BOTH SURGED
 /ADVANCE/ NEW YORK, Feb. 9 /PRNewswire/ -- Last year "was a great year for stocks and bonds," with underwritings of both surging, and individual investors returning to the market with special interest in longer-term investments, a Securities Industry Association economist said Monday (Feb. 10).
 Although debt offerings "exploded," there was even a greater "tilt toward equity," Jeffrey M. Schaefer, senior vice president, research, said in the current Investor Activity Report (IAR).
 "The 1991 trend is an important move back to equity. It may indicate that companies will seek a more conservative approach to financing their capital needs in the 1990s," Schaefer said.
 Equity Underwritings Rose 219 Percent
 With rising stock prices and falling interest rates creating one of the best environments in years for the underwriting business, total equity underwritings rose 219 percent to $76 billion in 1991 from $23.9 billion in 1990, Schaefer said.
 Meanwhile, total debt offerings increased 74.5 percent to $507 billion in 1991 from $290.6 billion in 1990.
 Mutual Fund Data Show Return of Individual to Market
 In addition, the latest mutual fund data "are a strong indicator that individuals have returned to the U.S. stock market," Schaefer said.
 Net sales of equity mutual funds rose to $43 billion in 1991, from $25.7 billion in 1990.
 Individuals not only returned to equity mutual funds, but they bought unprecedented amounts of 'bond and income' mutual funds as well," he said.
 Net sales of these funds from the companies to investors totaled $76 billion, compared to $25.5 billion in 1990. As a result, 1991 had the second highest total, surpassed only by $118 billion net sales in 1986, data from the Investment Company Institute show.
 Individuals Seeking Long-Term Investments, Data Show
 Analysis of the data also show a preference by individual investors for longer-term securities, Schaefer said.
 The conclusion is "supported by an increase in these assets relative to money market mutual funds," he said.
 From December 1990 through December 1991, assets of money market mutual funds grew slightly more than 8 percent, compared to an increase of nearly 37 percent in bond and income funds, and 49 percent in equity mutual funds, Schaefer said.
 Examining the general growth of mutual funds since the end of 1985, Schaefer noted in terms of attracting investor assets, deposit-taking institutions "have been losing the battle to mutual funds."
 According to Federal Reserve data, more than $150 billion was withdrawn from time deposits in deposit-taking institutions in 1991, while $280 billion was accumulated in mutual funds of all types, he said.
 Moreover, 1991 was the first year since 1987 in which the increase in assets of equity, and bond and income mutual funds exceeded the increase in assets of money market mutual funds, Schaefer said.
 -0- 2/10/92
 /CONTACT: Art Samansky or Karen San Antonio of Securities Industry Association, 212-608-1500/ CO: Securities Industry Association ST: New York IN: FIN SU:


CK-OS -- NY038 -- 7780 02/07/92 12:46 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 7, 1992
Words:509
Previous Article:COMERICA CALIFORNIA POSITIONS FOR GROWTH
Next Article:RIVERSIDE HEALTH SYSTEM OF NEWPORT NEWS RATED Aa BY MOODY'S; 41ST Aa RATED HEALTH CARE INSTITUTION
Topics:


Related Articles
AS THE DOW WOWS, INVESTORS GO FOR GROWTH
APRIL MUTUAL FUND SALES TOTAL $29.9 BILLION
JULY MUTUAL FUND SALES TOTAL $32.0 BILLION
SEPTEMBER MUTUAL FUND SALES TOTAL $29.4 BILLION
INDIVIDUALS SEEN MAKING "DRAMATIC CHANGE" IN PORTFOLIOS FROM 1980 THROUGH MID-YEAR 1992, SIA REPORT SHOWS
MOVES TO MUTUAL FUNDS FROM CERTIFICATES OF DEPOSIT IN QUARTER MADE RETAIL SECTOR FORCE DRIVING NYSE VOLUME SURGE, SIA SAYS
MONEY SMALL INVESTOR INDEX: TAX BILL SENDS INVESTORS RUNNING FOR MUNIS
MONEY SMALL INVESTOR INDEX: MONEY POURS INTO FOREIGN FUNDS AT RECORD RATES
MONEY SMALL INVESTOR INDEX: EXPERIENCED INVESTORS SELLING, BEGINNERS BUYING
As Good as it Gets!

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters