UK net capital issuance turned negative in September at -£1.8 billion

Victoria Shinder28 October 2026, 09:261 min read

Net capital issuance by UK residents was -£1.8 billion in September, down from £3.0 billion in August and below the previous six-month average of £5.1 billion, according to Bank of England statistics published on 27 October. Gross issuance rose to £76.5 billion from £57.2 billion, but gross repayments rose by £24.0 billion, more than the £19.3 billion increase in issuance. The figures cover non-government issuance of bonds, commercial paper and equity in all currencies.

By instrument: net bond issuance was -£0.3 billion, after £6.4 billion in August, driven by £7.8 billion more in gross repayments by monetary financial institutions; gross bond issuance was £32.2 billion. Commercial paper went the other way, with net issuance of £4.2 billion on gross issuance of £43.6 billion, after a £12.2 billion increase in gross issuance by the MFI sector. Net equity issuance was -£5.7 billion, after -£3.8 billion, reflecting £1.2 billion more in gross buybacks by other financial corporations.

The year-to-date picture remains strong. Gross issuance stands at £662.4 billion, £88.8 billion higher than at the same point last year and £161.2 billion above the previous four-year average. Net issuance year to date is £62.5 billion, £39.5 billion above last year.

What it means

One negative month after a heavy year is a redemption bump, not a closed market: issuance actually rose, and the swing came from repayments, concentrated in bank bonds. The shift inside the month is the detail to watch — banks repaying bonds while issuing more short-term commercial paper shortens the maturity of their market funding.