Financials Push US$ Investment Grade over $100b
The volume of US dollar-denominated investment grade corporate debt totaled $108.4 billion for the month of January, the second strongest start to the year for issuance in this asset class behind January 2011 ($111.6 billion). Year-to-date, US dollar-denominated investment grade corporate debt issuance has increased 33% compared to the year ago period, powered by financial issuers which account for 63% of monthly issuance. Corporate bonds from the healthcare, consumer staples and consumer products sectors have more than doubled compared to last year at this time.
JP Morgan controls 18.1% of US dollar-denominated investment grade debt underwriting so far this year, up from 15.1% during January 2012. Bank of America Merrill Lynch follows with 16.8% of the market, up from 10.5% last year.
Global ECM Up 68%; Triple-Digit Gains in Asia Pacific
Global equity capital markets activity totals $50.5 billion for year-to-date 2013, a 68% increase compared to last year at this time, bolstered by triple-digit percentage gains in Asia Pacific this year. Issuers in the financials, real estate, energy & power and materials sectors account for 67% of year-to-date activity, compared to 75% during year-to-date 2012. European issuers top the list of largest offerings this year with ArcelorMittal's combined $4.0 billion follow-on and convertible offering, a $1.6 billion follow-on from Poland's PKO Bank Polski SA and a $1.6 billion convertible bond from Italy's ENI SpA.
Citi tops the list of global ECM underwriters through January, with 8.6% share of the market. Morgan Stanley and Goldman Sachs follow with 8.5% and 7.2% share, respectively.
M&A Activity Falls 6% from 2012
Worldwide merger & acquisition activity totals $119.0 billion for year-to-date 2013, a 6% decline from the same time last year. Targets in the United States, Canada and China account for 58% of M&A activity so far this year. This week's $4.7 billion bid for Copano Energy LLC from Kinder Morgan Energy Partners , which ranks as the second largest announced deal this year behind DISH Network's $8.0 billion challenging tender offer for Clearwire Corp, brings the value of energy & power M&A to $16.2 billion , a decline of 29% compared to year-to-date 2012.
Retail & telecommunications deal making have registered triple-digit percentage increases over year-to-date 2012, while healthcare M&A leads the declining sectors, down 45% compared to last year.