4 ms·
True, though you have to include the stock market too, that's equity. US Bond market cap is roughly $120 trillion, stock market cap is ~$45trillion. So the eq
by SkyMarshal 4y ago
True, though you have to include the stock market too, that's equity. US Bond market cap is roughly $120 trillion, stock market cap is ~$45trillion. So the equity market is about half the debt market, if you exclude govt debt.
That said, if somehow you had a similar hypothetical economy but with little or no debt, the equity side might be larger.
- ivalm 4y agoVast majority of stock market cap does not contribute to company capitalization. Primary equity offerings on the market are rare and use only a fraction of total equity. Most trades are secondary and don’t capitalize the company. The entire bond market value is a capital raise for the companies.