Equity prices moved slightly higher during the second quarter of 2004, driven by motivated buying on the part of domestic issuers, mutual funds, and life insurance companies. The primary sellers into this market were foreign issuers and domestic households, following a long-established pattern of behavior. The motivation of domestic corporations to repurchase their own stock to […]

The primary sellers of corporate bonds during the quarter were issuers of asset-backed securities, placing a record (net) $315.2 billion. The principal buyers were foreign investors ($213.2 billion, net) and life insurance companies ($160.1 billion net). Also major sellers in this market were domestic households ($181.4 billion, net). Money raised by issuers of asset-backed securities was used […]

State and local governments continued to issue bonds to finance long-term fixed investment, while covering current expenditures with local taxes and transfer payments from the federal government. The level of issuance of long-term bonds was about five times levels of 1999-2000, but about 46% of funds raised were used to redeem short-term bonds, in an effort […]