Record Equity Issuance Should Not Be A Headwind For Equity Markets

UBS analysis indicates that rising US equity issuance is supported by market growth and offset by high levels of share buybacks. Consequently, issuance is not viewed as a significant threat to further equity market gains.

Key Takeaways

• 1.The sharp rise in US equity issuance is not expected to be a material headwind for markets, as it represents a return to normal alongside significant market cap growth.
• 2.Robust share buyback levels are expected to exceed gross issuance, effectively offsetting the supply increase.
• 3.Equities are expected to trend higher in the next 6-12 months due to AI capex strength, resilient economic data, and fiscal spending.

Table of Contents

• Thought of the day
• What to watch: 23 June
• Caught our attention
• Market update

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