Thomson Reuters Investment Banking Monthly Snapshot - August

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Here's Thomson Reuters investment banking snapshot for August.

Debt Capital Markets - By The Numbers

Debt capital markets activity during August 2011 reached $256.2 billion, marking the slowest month for global debt activity since May 2010 ($255.9 billion). Monthly activity fell 15% from July 2011 and nearly 32% from the comparative period in August 2010. Global investment grade debt activity, which accounted for 50% of the monthly total, registered the lowest volume since December 2010, while global high yield new issues raised just over $1 billion, marking the slowest monthly period for junk bonds since December 2008.

A trio of European investment banks - Deutsche Bank, Barclays Capital and UBS - commanded nearly 25% of August monthly debt capital markets activity.

Equity Capital Markets - By The Numbers

Global equity capital markets activity totaled billion for the month of August, a 69% decline from July 2011 and down 49% compared to August 2010. ECM activity in August marks the slowest monthly volume for new issuance since August 2008 ($16.9 billion). The pace of initial public offerings fell to $5.6 billion, the slowest month for global IPO activity since May 2009 ($943.9 million).

Financials accounted for 29% of overall ECM activity during the month, followed by energy & power and materials, with 22% and 13%, respectively.

Issuers from China and the United States accounted for two-thirds of ECM volume in August.

Mergers & Acquisitions - By The Numbers

Worldwide mergers & acquisitions totaled $197.2 billion during August 2011, an 18% decline from July 2011 and the slowest month for M&A activity since October 2010 ($182.7 billion). Deal making in the United States accounted for 30% of activity in August, followed by China (12%), and the United Kingdom and Russia (9%).

Financials, energy & power, high technology, and materials deals led month, accounting for 55% of volume.

Berkshire Hathaway's $5.0 billion investment in Bank of America and the $8.9 billion sale of a portion of BofA's stake in China Construction Bank represented 7% of monthly M&A activity.

Source - Thomson Reuters

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