Thomson Reuters Debt Capital Markets Review First Quarter 2013

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GLOBAL DEBT CAPITAL MARKETS FALLS 14% FROM 2012

Overall global debt capital markets activity totaled US$1.5 trillion during the first quarter of 2013, a 14% decrease from the comparable period in 2012 and the slowest first quarter for global debt capital markets activity since 2008. Registering a decline of 28% compared to last year, European issuers contributed 40% to the quarterly tally, down from 46% during the first quarter of 2012.

STRONGEST ANNUAL START FOR GLOBAL HIGH YIELD ON RECORD

The volume of global high yield corporate debt reached US$132.0 billion during the first quarter of 2013, a 22% increase compared to first quarter 2012 and the strongest annual start for high yield debt activity since records began in 1980. High yield issuance from issuers in the United States accounted for 60% of first quarter activity, compared to 71% during the first quarter of 2012. Issuance from European issuers increased 58% compared to the same time last year.

GLOBAL ABS UP 26%; CDO/CLO ACTIVITY ACCOUNTS FOR 24%

Global asset-backed securities totaled US$90.8 billion during the first quarter of 2012, a 26% increase compared the same time last year and the best annual start for global ABS since 2007. Collateralized debt and loan obligations totaled US$21.8 billion during the first quarter, more than triple issuance during the first quarter of 2012 and accounted for 24% of the quarterly ABS total.

FINANCIALS ACCOUNT FOR 47% OF 2013 DCM ACTIVITY

Debt capital markets activity in the financials sector totaled US$715 billion during the first quarter of 2013, accounting for 47% of all new issues this year. Telecom and Consumer Staples debt capital markets activity saw increases of 85% and 78%, respectively, over first quarter 2012, while new issues in the Retail sector saw year-over-year declines of 44%. Average deal size in the Media sector led all industries during first quarter 2013, with the average deal totaling US$670.3 million.

EMERGING MARKETS CORPORATE DEBT DOWN 7%

New issuance of corporate debt from emerging markets issuers totaled US$119.3 billion during the first quarter of 2013, a 7% decrease from the first quarter of 2012. Activity was led by issuers from India, Russia and Brazil, which accounted for 39% of all emerging markets corporate debt during the quarter.

JP MORGAN TOPS GLOBAL DEBT LEAGUE TABLES

Bolstered by strength in global investment grade and high yield corporate debt underwriting, JP Morgan took the top spot for the first quarter 2013 debt underwriting with total proceeds of $126.7 billion and an increase of 0.7 market share points. Deutsche Bank retained the number two spot during the first quarter of 2013, with a 7.2% market share. The composition of the top five global debt underwriters remained unchanged from the first quarter of 2012.

SLIGHT INCREASE FOR DEBT UNDERWRITING FEES

According to Thomson Reuters/Freeman Consulting, estimated fees from debt capital markets activity totaled US$6.4 billion during the first quarter of 2013, up 0.8% from the first quarter of 2012. Fees from investment grade debt underwriting totaled US$2.8 billion, or 44% of the overall total, while fees from high yield debt totaled $1.9 billion, or 30% of overall DCM fees.

Source - Thomson Reuters

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