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

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.

2

Table 1: Dollar Volume of Medium-Term Notes Outstanding
(Millions of dollars, end of period)

Issuer

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

All U.S. corporations

210,895

235,486

267,501

287,323

302,102

388,729

420,565

446,439

479,178

515,912

556,053

Financial corporations

125,405

145,857

171,096

194,535

221,247

290,424

320,165

349,344

384,903

422,883

470,612

78,527
33,270
45,257
19,558
1,002
21,751
n.a.
4,567

91,439
33,753
57,686
21,468
1,250
26,944
n.a.
4,756

107,618
37,076
70,542
27,964
2,255
27,176
n.a.
6,083

115,738
37,541
78,197
33,569
2,670
34,556
n.a.
8,002

121,370
38,496
82,874
35,666
600
56,692
81
6,838

150,041
45,794
104,247
52,201
340
74,105
3,668
10,069

164,238
57,016
107,222
63,333
840
75,717
4,965
11,072

167,616
48,017
119,599
61,200
265
94,379
9,951
15,933

192,739
58,333
134,406
54,693
165
95,807
20,351
21,148

243,445
56,430
187,016
48,238
150
77,219
32,846
20,986

264,934
52,532
212,402
52,383
100
77,504
38,478
37,214

85,490

89,629

96,405

92,788

80,855

98,305

100,400

97,095

94,275

93,028

85,441

28,178
30,885
6,182

28,771
31,959
7,453

29,658
33,945
10,091

28,288
34,204
10,944

21,979
21,941
12,009

24,464
29,734
14,382

23,972
30,143
15,494

26,877
27,291
13,171

27,543
27,792
12,958

26,537
29,778
11,382

23,686
27,644
11,010

5,841

6,731

7,414

5,538

13,367

15,951

16,165

15,365

11,575

11,580

9,845

6,482
7,922

6,233
8,482

6,094
9,203

5,713
8,101

3,887
7,672

5,232
8,542

6,088
8,538

5,945
8,446

6,129
8,278

5,441
8,310

4,903
8,354

17

19

19

18

19

15

14

13

12

12

12

Finance companies
Auto
Other
Commercial banks
Other depository institutions
Securities brokers
Asset-backed
Other1
Nonfinancial corporations
Electric, gas, and water
Manufacturing
Services
Telephone and
communication
Transportation, mining, and
construction
Wholesale and retail trade
Memo:
Ratio of MTNs to sum of
corporate bonds and MTNs2

Note. Components may not sum to totals because of rounding. Data source changed between 1996 and 1997. Data from 1997 through 2001 were
significantly revised in 2002.
1
“Other” financial corporations consists of insurance and real estate firms and miscellaneous investing institutions.
2
Corporate bond data are from Moody’s Investors Service. Corporate bonds and MTNs exclude private placements, Eurobonds, Yankee bonds,
and U.S. agency securities. The corporate bond data also exclude asset-backed securities, which have been removed from the MTN data for this
calculation.
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

2003

All U.S. corporations

367

376

401

411

435

460

456

460

461

460

442

Financial corporations

115

114

121

126

156

167

170

177

176

188

185

50
3
47
32
9
7
n.a.
17

51
3
48
30
5
10
n.a.
18

50
3
47
31
6
10
n.a.
24

49
3
46
32
6
10
n.a.
29

59
7
52
36
4
18
2
37

63
7
56
37
3
19
3
42

62
6
56
38
4
18
4
44

64
6
58
40
3
17
7
46

61
6
55
39
3
17
8
48

65
6
59
36
2
15
21
49

61
5
56
36
1
15
21
51

252

262

280

285

279

293

286

283

285

272

257

83
104
13

83
111
13

90
117
14

91
117
14

87
91
25

92
98
25

91
95
24

94
90
25

98
92
23

95
93
18

87
91
19

16

17

17

18

26

25

24

22

22

20

20

19
17

19
19

21
21

23
22

21
29

24
29

23
29

21
31

22
28

21
25

19
21

Finance companies
Auto
Other
Commercial banks
Other depository institutions
Securities brokers
Asset-backed
Other1
Nonfinancial corporations
Electric, gas, and water
Manufacturing
Services
Telephone and
communication
Transportation, mining, and
construction
Wholesale and retail trade

Note. Components may not sum to totals because of rounding. Data source changed between 1996 and 1997.
Data from 1997 through 2001 were significantly revised in 2002.
1
“Other” financial corporations consists of insurance and real estate firms and miscellaneous investing institutions.
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

All U.S. corporations
AAA
AA
A
BBB
BB
B
Other1
Financial corporations
AAA
AA
A
BBB
BB
B
Other1
Nonfinancial corporations
AAA
AA
A
BBB
BB
B
Other1

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

210,894

235,486

267,501

287,323

302,102

388,729

420,567

446,439

479,177

515,912

556,053

8,799
12,860
122,544
62,232
3,637
373
450

12,725
15,686
142,543
59,603
4,136
343
451

17,021
22,984
161,758
61,040
3,723
500
475

13,599
38,027
168,488
61,449
4,638
635
488

11,470
48,541
197,197
37,515
5,166
884
1,331

16,779
51,318
266,444
43,563
5,989
898
3,740

25,620
50,110
283,925
49,610
6,200
403
4,698

38,901
98,170
248,306
45,399
7,268
4,712
3,684

69,613
107,747
193,948
95,088
7,422
520
4,839

120,080
116,368
216,588
46,211
5,069
0
11,596

146,655
124,964
225,398
43,242
4,820
0
10,975

125,404

145,857

171,096

194,535

221,248

290,424

320,166

349,344

384,903

422,883

470,612

7,570
4,853
81,172
30,596
1,213
0
0

12,130
9,747
96,964
25,839
1,177
0
0

16,621
16,185
107,662
29,410
1,218
0
0

13,045
30,771
119,131
30,337
1,251
0
0

10,013
34,180
157,758
16,142
1,346
704
1,105

15,562
34,492
214,799
20,098
1,263
718
3,492

24,505
30,757
234,069
25,199
938
243
4,455

38,230
81,514
204,320
15,426
1,795
4,546
3,513

67,431
91,406
154,586
66,858
714
440
3,468

117,056
109,847
174,350
16,584
244
0
4,803

143,475
118,117
187,514
16,077
161
0
5,269

85,490

89,629

96,405

92,788

80,854

98,305

100,401

97,095

94,274

93,028

85,441

1,229
8,007
41,371
31,636
2,424
373
450

595
5,939
45,579
33,763
2,959
343
451

400
6,799
54,095
31,630
2,506
500
475

554
7,256
49,357
31,111
3,387
635
488

1,456
14,361
39,440
21,372
3,819
180
226

1,217
16,826
51,644
23,464
4,726
180
248

1,115
19,353
49,857
24,411
5,262
160
243

671
16,656
43,985
29,973
5,473
166
171

2,181
16,341
39,363
28,230
6,708
80
1,371

3,024
6,522
42,238
29,627
4,825
0
6,793

3,180
6,847
37,884
27,165
4,659
0
5,706

Note. Components may not sum to totals because of rounding. Data source changed between 1996 and 1997. Data from 1997 through 2001 were
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 Investors Service.
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

2001

2002

2003

All U.S. corporations

86,061

88,144

98,916

93,677

114,436

149,219

170,753

210,183

222,931

257,754

292,273

Financial corporations

57,841

70,374

79,461

81,954

98,878

128,524

149,291

190,487

205,827

237,383

278,825

Finance companies
Auto
Other
Banking firms
Savings and loans
Securities brokers
Asset-backed
Other1

30,060
10,755
19,305
7,561
861
17,937
n.a.
1,422

41,605
11,219
30,386
8,103
500
19,320
n.a.
846

45,648
11,631
34,017
13,945
1,285
16,912
n.a.
1,671

41,590
8,642
32,948
12,136
1,518
24,319
n.a.
2,391

44,045
12,076
31,969
14,815
180
36,192
n.a.
3,646

63,125
19,732
43,393
19,057
100
40,759
n.a.
5,483

70,570
26,909
43,661
24,038
500
46,275
5,438
2,470

74,122
17,534
56,588
22,199
0
78,761
8,469
6,936

89,988
28,945
61,043
18,128
0
70,875
14,929
11,907

128,183
16,327
111,856
13,090
0
57,870
28,599
9,641

108,018
14,048
93,970
19,973
0
64,251
60,845
25,738

28,220

17,770

19,455

11,723

15,558

20,695

21,462

19,696

17,104

20,370

13,449

10,858
8,394
3,079

2,523
6,817
3,529

2,732
7,531
4,691

1,877
5,221
3,144

2,765
6,321
4,187

3,198
9,213
6,837

2,493
7,023
5,012

5,586
5,699
1,941

3,716
5,726
3,843

4,217
7,139
3,015

2,413
5,296
3,719

2,729

1,492

1,493

831

838

395

4,292

3,788

1,580

3,115

0

1,740
1,420

920
2,489

612
2,396

405
245

177
1,270

111
941

1,558
1,084

1,088
1,594

1,304
935

709
2,175

896
1,125

Nonfinancial corporations
Electric, gas, and water
Manufacturing
Services
Telephone and
communication
Transportation, mining, and
construction
Wholesale and retail trade

Note. Components may not sum to totals because of rounding. Data source changed between 1996 and 1997. Data from 1999 through 2001 were
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

2003

All U.S. corporations

210

171

195

165

158

145

150

145

122

135

141

Financial corporations

71

68

78

87

84

71

77

80

67

86

96

Finance companies
Auto
Other
Banking firms
Savings and loans
Securities brokers
Asset-backed
Other1

31
3
28
19
2
7
n.a.
12

30
3
27
16
1
10
n.a.
11

34
3
31
19
3
8
n.a.
14

36
3
33
21
2
10
n.a.
18

38
5
33
20
1
11
n.a.
14

29
6
23
14
1
9
n.a.
18

29
5
24
16
1
11
4
16

34
5
29
13
0
11
6
16

27
4
23
11
0
9
8
12

32
4
28
13
0
9
19
13

34
5
29
16
0
10
19
17

139

103

117

78

74

74

73

65

55

49

45

60
47
7

37
39
8

42
46
7

31
29
7

32
20
6

31
26
7

22
24
10

25
18
9

20
18
6

15
17
5

14
19
4

8

6

8

5

4

2

5

4

2

2

0

9
8

7
6

7
7

3
3

4
8

3
5

6
6

4
5

5
4

4
6

3
5

Nonfinancial corporations
Electric, gas, and water
Manufacturing
Services
Telephone and
communication
Transportation, mining, and
construction
Wholesale and retail trade

Note. Components may not sum to totals because of rounding. Data source changed between 1996 and 1997.
Data from 1999 through 2001 were significantly revised in 2002.
1
“Other” financial corporations consists of insurance and real estate firms and miscellaneous investing institutions.
n.a. Not available.

Table 6: Dollar Volume of Gross Issuance of Medium-Term Notes, by Issuer Rating
(Millions of dollars)

Issuer and Rating

All U.S. corporations
AAA
AA
A
BBB
BB
B
Other1

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

86,063

87,844

98,916

93,675

114,470

149,269

170,753

210,181

222,932

257,754

292,273

4,091
4,840
57,800
17,759
1,573
0
n.a.

9,274
5,292
58,600
13,926
618
134
n.a.

10,358
7,965
65,440
14,452
573
128
n.a.

4,740
12,011
60,910
15,126
757
131
n.a.

2,065
28,688
68,080
14,361
266
1,010
n.a.

10,021
37,148
86,054
15,887
159
0
n.a.

15,832
15,277
124,568
10,289
478
100
4,209

25,730
49,541
122,556
9,713
451
50
2,140

38,811
49,183
102,860
29,392
526
0
2,160

89,342
74,277
82,130
7,092
0
0
4,912

107,347
83,115
89,474
7,964
50
0
4,323

Note. Components may not sum to totals because of rounding. Data source changed between 1996 and 1997. Data from 1999 through 2001 were
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 Investors Service.
n.a. Not available.