Record Equity Issuance Shouldn't Be A Headwind For Us Equity Markets

UBS analysis concludes that surging US equity issuance will not hinder market gains, as corporate buybacks remain robust and current issuance levels are proportional to the broader market's growth.

Key Takeaways

• 1.Rising US equity issuance is not expected to be a material headwind for markets, as it reflects a return to normal levels relative to market size.
• 2.Corporate share buybacks are offsetting new equity supply, suggesting a neutral net supply environment.
• 3.The firm maintains an Attractive view on Indonesian equities despite risks surrounding a potential MSCI status downgrade.

Table of Contents

• From Circle One
• Thought of the day
• What to watch: 19 June
• Caught our attention
• Market update
• Global asset class preferences definitions
• Appendix

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