Corporate Medium-Term Notes, 2003

Medium-term notes (MTNs) outstanding at the end of 2003 totaled $556 billion (table 1), up

from $516 billion in 2002. The growth mirrored that of corporate bonds, and the ratio of MTNs

outstanding to the sum of MTNs and bonds outstanding held steady at 12 percent. Outstandings

at financial firms increased $48 billion, while the continuing runoff at nonfinancial firms reduced

their outstandings by about $8 billion. Among financial firms, most sectors showed an increase

in MTNs outstanding; the largest increase was again at non-auto finance companies, where

outstandings rose $25 billion, to $212 billion. The second largest increase among financial firms

was $16 billion in the “other” category, which consists of insurance and real estate firms and

miscellaneous investing institutions. Among nonfinancial firms, the levels of outstandings

declined almost across the board; the only exception was the wholesale and retail trade category,

which was unchanged from 2002. The largest decline was in the electric, gas, and water

companies group.

Despite the overall increase in outstandings, the number of MTN programs fell in 2003 to 442,

the lowest number since 1997 (table 2). The number of financial MTN programs dipped from

188 in 2002 to 185 in 2003. The number of nonfinancial MTN programs fell more sharply in

2003, to 257, the lowest number since 1993; the largest decrease, 8 programs, was in the electric,

gas, and water companies sector. Since 1993, manufacturing has lost, on balance, 13 programs,

the most of any sector.

By rating, AAA-rated MTNs outstanding recorded the largest net increase in 2003, and the vast

majority of total MTNs outstanding continue to be rated investment grade (those rated BBB or

higher) (table 3). Outstanding speculative grade MTNs, those rated BB or lower or in the

“other” rating category, fell somewhat and accounted for only 3 percent of total outstandings. In

2003, speculative grade MTNs accounted for about 1 percent of outstandings issued by financial

firms and for about 12 percent of outstandings issued by nonfinancial firms, proportions similar

to those in 2002. 

As is consistent with the increase in MTNs outstanding, gross issuance rose $34 billion, to $292

billion, in 2003 (table 4). The gain is more than accounted for by the financial sector, in which

asset-backed issuance rose $32 billion and issuance by the “other” category of financial firms

rose $16 billion. Gross issuance by finance companies dropped significantly but remained

elevated relative to its history. In the nonfinancial group, fewer firms are tapping the MTN

market, and issuance was down in most sectors. Overall, gross issuance by nonfinancial firms

fell sharply, from $20 billion to $13 billion. Firms in the telephone and communication sector

did not use the MTN market in 2003, reducing gross issuance by $3 billion.
Corporate Medium-Term Notes, 2003 2

The ratings distribution of MTN issuance in 2003 was similar to that for outstanding MTNs

(table 6). Among speculative-grade firms, those rated BB issued only $50 million of MTNs,

those rated B issued none, and those in the “other” credit-quality category issued about $4

billion.
Table 1: Dollar Volume of Medium-Term Notes Outstanding

(Millions of dollars, end of period)

Issuer 1993 1994 1995 1996 1997 1998 1999 2000 2All U.S. corporations 210,895 235,486 267,501 287,323 302,102 388,729 420,565 446,439 479Financial corporations 125,405 145,857 171,096 194,535 221,247 290,424 320,165 349,344 384

Finance companies 78,527 91,439 107,618 115,738 121,370 150,041 164,238 167,616 192

Auto 33,270 33,753 37,076 37,541 38,496 45,794 57,016 48,017 58Other 45,257 57,686 70,542 78,197 82,874 104,247 107,222 119,599 134

Commercial banks 19,558 21,468 27,964 33,569 35,666 52,201 63,333 61,200 54Other depository institutions 1,002 1,250 2,255 2,670 600 340 840 265 Securities brokers 21,751 26,944 27,176 34,556 56,692 74,105 75,717 94,379 95Asset-backed n.a. n.a. n.a. n.a. 81 3,668 4,965 9,951 20Other1 4,567 4,756 6,083 8,002 6,838 10,069 11,072 15,933 21

Nonfinancial corporations 85,490 89,629 96,405 92,788 80,855 98,305 100,400 97,095 94

Electric, gas, and water 28,178 28,771 29,658 28,288 21,979 24,464 23,972 26,877 27Manufacturing 30,885 31,959 33,945 34,204 21,941 29,734 30,143 27,291 27Services 6,182 7,453 10,091 10,944 12,009 14,382 15,494 13,171 12Telephone and

communication 5,841 6,731 7,414 5,538 13,367 15,951 16,165 15,365 11

Transportation, mining, and

construction 6,482 6,233 6,094 5,713 3,887 5,232 6,088 5,945 6

Wholesale and retail trade 7,922 8,482 9,203 8,101 7,672 8,542 8,538 8,446 8

Memo:Ratio of MTNs to sum ofcorporate bonds and MTNs2 17 19 19 18 19 15 14 13 

Note. Components may not sum to totals because of rounding. Data source changed between 1996 and 1997. Data from 19

significantly revised in 2002. 1“Other” financial corporations consists of insurance and real estate firms and miscellaneous investing institutions.

2Corporate bond data are from Moody’s Investors Service. Corporate bonds and MTNs exclude private placements, Euro

and U.S. agency securities. The corporate bond data also exclude asset-backed securities, which have been removed from thcalculation.

n.a. Not available.
Table 2: Number of Issuers with Medium-Term Notes Outstanding

(End of period)

Issuer 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 All U.S. corporations 367 376 401 411 435 460 456 460 461 46Financial corporations 115 114 121 126 156 167 170 177 176 18

Finance companies 50 51 50 49 59 63 62 64 61 6

Auto 3 3 3 3 7 7 6 6 6 6 Other 47 48 47 46 52 56 56 58 55 59 

Commercial banks 32 30 31 32 36 37 38 40 39 36 Other depository institutions 9 5 6 6 4 3 4 3 3 Securities brokers 7 10 10 10 18 19 18 17 17 15 Asset-backed n.a. n.a. n.a. n.a. 2 3 4 7 8 2Other1 17 18 24 29 37 42 44 46 48 49 

Nonfinancial corporations 252 262 280 285 279 293 286 283 285 272 

Electric, gas, and water 83 83 90 91 87 92 91 94 98 95 Manufacturing 104 111 117 117 91 98 95 90 92 93 Services 13 13 14 14 25 25 24 25 23 18 Telephone and

communication 16 17 17 18 26 25 24 22 22 20 

Transportation, mining, and

construction 19 19 21 23 21 24 23 21 22 2

Wholesale and retail trade 17 19 21 22 29 29 29 31 28 25 

Note. Components may not sum to totals because of rounding. Data source changed between 1996 and 19

Data from 1997 through 2001 were significantly revised in 2002. 1“Other” financial corporations consists of insurance and real estate firms and miscellaneous investing insti

tions.

n.a. Not available.
Table 3: Dollar Volume of Medium-Term Notes Outstanding, by Issuer Rating

(Millions of dollars, end of period)

Issuer and Rating 1993 1994 1995 1996 1997 1998 1999 2000 2All U.S. corporations 210,894 235,486 267,501 287,323 302,102 388,729 420,567 446,439 479

AAA 8,799 12,725 17,021 13,599 11,470 16,779 25,620 38,901 69AA 12,860 15,686 22,984 38,027 48,541 51,318 50,110 98,170 107A 122,544 142,543 161,758 168,488 197,197 266,444 283,925 248,306 193BBB 62,232 59,603 61,040 61,449 37,515 43,563 49,610 45,399 95BB 3,637 4,136 3,723 4,638 5,166 5,989 6,200 7,268 7B 373 343 500 635 884 898 403 4,712 Other1 450 451 475 488 1,331 3,740 4,698 3,684 4

Financial corporations 125,404 145,857 171,096 194,535 221,248 290,424 320,166 349,344 384

AAA 7,570 12,130 16,621 13,045 10,013 15,562 24,505 38,230 67AA 4,853 9,747 16,185 30,771 34,180 34,492 30,757 81,514 91A 81,172 96,964 107,662 119,131 157,758 214,799 234,069 204,320 154BBB 30,596 25,839 29,410 30,337 16,142 20,098 25,199 15,426 66BB 1,213 1,177 1,218 1,251 1,346 1,263 938 1,795 B 0 0 0 0 704 718 243 4,546 Other1 0 0 0 0 1,105 3,492 4,455 3,513 3

Nonfinancial corporations 85,490 89,629 96,405 92,788 80,854 98,305 100,401 97,095 94

AAA 1,229 595 400 554 1,456 1,217 1,115 671 2AA 8,007 5,939 6,799 7,256 14,361 16,826 19,353 16,656 16A 41,371 45,579 54,095 49,357 39,440 51,644 49,857 43,985 39BBB 31,636 33,763 31,630 31,111 21,372 23,464 24,411 29,973 28BB 2,424 2,959 2,506 3,387 3,819 4,726 5,262 5,473 6B 373 343 500 635 180 180 160 166 Other1 450 451 475 488 226 248 243 171 1

Note. Components may not sum to totals because of rounding. Data source changed between 1996 and 1997. Data from 19

significantly revised in 2002. 1“Other” rating category consists of firms rated less than B and those not rated by Standard and Poor’s or Moody’s Invest

n.a. Not available.
Table 4: Dollar Volume of Gross Issuance of Medium-Term Notes

(Millions of dollars)

Issuer 1993 1994 1995 1996 1997 1998 1999 2000 200All U.S. corporations 86,061 88,144 98,916 93,677 114,436 149,219 170,753 210,183 222,93Financial corporations 57,841 70,374 79,461 81,954 98,878 128,524 149,291 190,487 205,82

Finance companies 30,060 41,605 45,648 41,590 44,045 63,125 70,570 74,122 89,98

Auto 10,755 11,219 11,631 8,642 12,076 19,732 26,909 17,534 28,94Other 19,305 30,386 34,017 32,948 31,969 43,393 43,661 56,588 61,04

Banking firms 7,561 8,103 13,945 12,136 14,815 19,057 24,038 22,199 18,12Savings and loans 861 500 1,285 1,518 180 100 500 0 Securities brokers 17,937 19,320 16,912 24,319 36,192 40,759 46,275 78,761 70,87Asset-backed n.a. n.a. n.a. n.a. n.a. n.a. 5,438 8,469 14,92Other1 1,422 846 1,671 2,391 3,646 5,483 2,470 6,936 11,90

Nonfinancial corporations 28,220 17,770 19,455 11,723 15,558 20,695 21,462 19,696 17,10

Electric, gas, and water 10,858 2,523 2,732 1,877 2,765 3,198 2,493 5,586 3,71Manufacturing 8,394 6,817 7,531 5,221 6,321 9,213 7,023 5,699 5,72Services 3,079 3,529 4,691 3,144 4,187 6,837 5,012 1,941 3,84Telephone and

communication 2,729 1,492 1,493 831 838 395 4,292 3,788 1,58

Transportation, mining, and

construction 1,740 920 612 405 177 111 1,558 1,088 1,30

Wholesale and retail trade 1,420 2,489 2,396 245 1,270 941 1,084 1,594 93

Note. Components may not sum to totals because of rounding. Data source changed between 1996 and 1997. Data from 

significantly revised in 2002. 1“Other” financial corporations consists of insurance and real estate firms and miscellaneous investing institutions.

n.a. Not available.
Table 5: Number of Issuers of Medium-Term Notes

Issuer 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 All U.S. corporations 210 171 195 165 158 145 150 145 122 13Financial corporations 71 68 78 87 84 71 77 80 67 86 

Finance companies 31 30 34 36 38 29 29 34 27 32 

Auto 3 3 3 3 5 6 5 5 4 4 Other 28 27 31 33 33 23 24 29 23 28 

Banking firms 19 16 19 21 20 14 16 13 11 13 Savings and loans 2 1 3 2 1 1 1 0 0 0 Securities brokers 7 10 8 10 11 9 11 11 9 9 Asset-backed n.a. n.a. n.a. n.a. n.a. n.a. 4 6 8 19 Other1 12 11 14 18 14 18 16 16 12 13 

Nonfinancial corporations 139 103 117 78 74 74 73 65 55 49 

Electric, gas, and water 60 37 42 31 32 31 22 25 20 15 Manufacturing 47 39 46 29 20 26 24 18 18 17 Services 7 8 7 7 6 7 10 9 6 Telephone and

communication 8 6 8 5 4 2 5 4 2 

Transportation, mining, and

construction 9 7 7 3 4 3 6 4 5 4 

Wholesale and retail trade 8 6 7 3 8 5 6 5 4 6 

Note. Components may not sum to totals because of rounding. Data source changed between 1996 and 19

Data from 1999 through 2001 were significantly revised in 2002. 1“Other” financial corporations consists of insurance and real estate firms and miscellaneous investing insti

tions.

n.a. Not available.
Table 6: Dollar Volume of Gross Issuance of Medium-Term Notes, by Issuer Rating

(Millions of dollars)

Issuer and Rating 1993 1994 1995 1996 1997 1998 1999 2000 200All U.S. corporations 86,063 87,844 98,916 93,675 114,470 149,269 170,753 210,181 222,93

AAA 4,091 9,274 10,358 4,740 2,065 10,021 15,832 25,730 38,81AA 4,840 5,292 7,965 12,011 28,688 37,148 15,277 49,541 49,18A 57,800 58,600 65,440 60,910 68,080 86,054 124,568 122,556 102,86BBB 17,759 13,926 14,452 15,126 14,361 15,887 10,289 9,713 29,39BB 1,573 618 573 757 266 159 478 451 52B 0 134 128 131 1,010 0 100 50 Other1 n.a. n.a. n.a. n.a. n.a. n.a. 4,209 2,140 2,16

Note. Components may not sum to totals because of rounding. Data source changed between 1996 and 1997. Data from 

significantly revised in 2002. 1“Other” rating category consists of firms rated less than B and those not rated by Standard and Poor’s or Moody’s Inv

n.a. Not available.