ICMSA Publication

30.09.24

ICMSA White Paper: The Eurobond Market – where global issuers meet global investors

Press Release

Today, the International Capital Markets Services Association (ICMSA) published a comprehensive white paper on the Eurobond market, showcasing the unique features that distinguish it from other investment vehicles and the integral role it plays within the global financial markets.

The paper tracks the Eurobond evolution, from their modest beginnings in the 1960s, as a niche solution to cater for the needs of a particular segment of the target investor base, to today where the Eurobond market is valued at EUR 13.2 trillion. The paper also highlights the innovative features that distinguish Eurobonds from other securities, whether domestic or cross-border. Notably, the unparalleled flexibility that Eurobonds offer in terms of selection of currency, instrument type and legal jurisdiction. This adaptability, combined with a deep liquidity pool and active secondary market are what drives the securities’ unique value proposition and makes them so attractive to a wide range of issuers and investors worldwide.

The Eurobond market is supported by a diverse network of intermediaries who provide services across all jurisdictions and time zones. While the International Central Securities Depositories (ICSDs) and Common Depositories (CDs) were designed to support this nascent market from its inception and as such are intrinsically tied to its evolution and growth, the Eurobond ecosystem is built on a network of global corporate trust banks, dealers and specialised service agents. While the market is primarily focused on fixed income securities, it has evolved steadily over time to encompass a wide range of security types, including structured products, equities and investment funds.

With 12,000 issuers based across 130 countries, Eurobonds represent a truly global offering, with a more diverse issuer base than any other bond market worldwide. Eurobonds embrace a wide range of products catering for individual investor appetite and, they remain popular even in times of geopolitical instability, and as such have demonstrated consistently high growth rates. Over 350,000 distinct Eurobond securities are currently in circulation, and between 300,000 to 550,000 new securities are issued annually by private institutions, central banks and supranational organisations.

Looking to the future, the ICMSA paper explores major trends shaping the Eurobond market. Emerging technologies such as automation, digitisation, data analytics, and distributed ledger technology (DLT) will drive significant changes, potentially transforming issuance processes and fostering greater transparency. The paper also examines how macroeconomic factors, geopolitical trends, and evolving regulations continue to influence the market.

Going forward, emphasis is on the need for ongoing innovation and adaptation to ensure the Eurobond market remains a thriving marketplace connecting global issuers and investors.

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