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comment by kleinbl00




blackbootz  ·  2132 days ago  ·  link  ·  

I only recently learned this, and it's just two: Microsoft and Johnson & Johnson's. In 1992, the number of AAA-rated companies was 98.

I was also surprised to learn how small a fraction of corporate financing comes from issuing equities. Equity financing is dwarfed by bond issuing, although it's the former we hear about except for in rare instances like the OP here.

I seem to recall a professor saying that the bond market itself is dwarfed by the largest source of commercial financing, i.e. bank loans. I can't find the graph he showed, I'll have to settle for this one (ends in 2009) that omits the loan volume. But I recall a similar proportion of bonds:equities as loans:bonds.

kleinbl00  ·  2132 days ago  ·  link  ·  

If I recall correctly the bond market is about six times the size of the stock market... but it all gets fuzzy because so much stuff is traded off-book these days anyway. I can't find any statistics newer than 2016, at which point dark pools were 40% of stock trades. Most of the bonds traded most people have no access to and loans are large piles of money helping out other large piles of money.

One thing about loans - there's less speculation there. Bonds and equities? Oh shit hold onto your butts.