2013 US Capital Markets watch - analysis and trends

February 2014
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2013 US Capital Markets watch - analysis and trends

At a glance

PwC's 2013 Capital Markets Watch offers an integrated view of capital markets with a discussion beyond Initial Public Offerings (IPOs) including the equity follow-on market, the convertible market, debt markets, and spin-offs.

Capital Markets Themes in 2013

  • US Equity Markets Rally to Record Highs: The broader stock indices in the US achieved record levels in 2013, erasing losses from the financial crisis and providing strong returns to investors.
  • Slow but Steady US Economic Growth: The US economy grew at approximately 3% in 2013, and is forecast to grow at a slightly higher pace in 2014. The pillars of growth such as employment and housing have all shown relative strength and have broadly recovered.
  • Record Low Interest Rate Environment: The Fed continued its low interest rate policy throughout 2013, which helped fuel US bond markets to record high issuances of investment grade bonds, and the second highest issuances of High Yield bonds, second only to 2012’s record.
  • A Hot IPO Market: Initial Public Offerings as an asset class provided returns of 39% in 2013, outperforming even the broader equity indices which reached record highs.