Investing in a New Financial Instrument: The First Buyers of Urban Debt in Catalonia (Mid. 14th Century)

Abstract This article consists of a systematic analysis of a large sample of the first purchasers of annuities issued by the urban governments of Catalonia between the years 1313 and 1367. Based on preliminary literature on the subject, it gathers, describes, and contextualizes, both from the point of view of the fiscal and financial development of the Crown of Aragon as a whole and from a more local perspective, unpublished references to operations of this type from the beginning of the 14 th century. In the second part, it analyses a sample, based on unedited data as well as specific studies, of 1,399 annuities sold by eight urban centres between the years 1330 and 1367 (the settlements are in different parts of Catalonia, ranging from big cities like Barcelona or Girona to small towns). These operations are examined according to their chronology, features of contracts and interest rates. Moreover, their buyers are also studied in light of their gender, socioeconomic status, and place of residence. The first purchasers of public debt in Catalonia appear to have been speculative investors, attracted by a financial product that, while lacking complete security, offered high interest rates and the theoretical promise of recovering the capital upon repayment of the credit.