Global debt capital markets Jan - June 2013 - JPMorgan hits it out the ballpark

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STRONGEST ANNUAL START FOR GLOBAL HIGH YIELD; Q2 VOLUME DOWN 19%

GLOBAL DEBT CAPITAL MARKETS DECLINES SLIGHTLY IN FIRST HALF - Global debt capital markets activity totaled US$3.0 trillion during the first half of 2013, a slight decline from 2012 levels and the slowest first half for global debt capital markets activity since 2008. Second quarter global debt activity decreased 16% compared to the first quarter of 2013 and marked the slowest quarter for debt issuance since the second quarter of 2012.

The volume of global high yield corporate debt reached US$241.8 billion during the first half of 2013, a 49% increase compared to first half 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 62% of first half activity, compared to 73% during the first half of 2012. Issuance from European issuers more than doubled compared to the same time last year. Second quarter activity totaled US$108.4 billion, down 19% compared to first quarter 2013.

GLOBAL ABS UP 10%; CDO/CLO ACTIVITY ACCOUNTS FOR 24%

Global asset-backed securities totaled US$172.8 billion during the first half of 2013, a 10% increase compared the same time last year and the best annual start for global ABS since 2007. Collateralized debt and loan obligations totaled US$42.3 billion during the first half, more than double issuance during the first half of 2012. CDO and CLO volume accounts for 24% of ABS this year compared to 10%.

FINANCIALS ACCOUNT FOR 46% OF 2013 DCM ACTIVITY

Debt capital markets activity in the financials sector totaled US$1.4 trillion during the first half of 2013, accounting for 46% of activity. High tech and healthcare debt capital markets activity saw the strongest year-over-year growth, registering increases of 142% and 64%, respectively, over first half 2012, while new issues in the financials sector saw year-over-year declines of 10%. Average deal size in the high tech sector led all industries during first half 2013, with the average deal totaling US$697.5 million.

EMERGING MARKETS CORPORATE DEBT UP 10%

New issuance of corporate debt from emerging markets issuers totaled US$181.3 billion in the first half of 2013, a 10% increase from the first half of 2012. Activity was led by issuers from India, Russia and Brazil which accounted for 48% of all emerging markets corporate debt during the first half.

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 first half 2013 debt underwriting with total proceeds of $130.9 billion and an increase of 0.1 market share point. Deutsche Bank moved into the number two spot during the first half of 2013, with 6.8% market share. Based on underwriting fees for the first half of 2013, JP Morgan topped all other underwriters with an estimated $995.1 million, or 8.4% of overall fees this year.

DEBT UNDERWRITING FEES UP 11%

According to Thomson Reuters/Freeman Consulting, estimated fees from debt capital markets activity totaled US$11.8 billion during the first half of 2013, up 11% from the first half of 2012. Fees from investment grade debt underwriting totaled US$5.5 billion, or 47% of the overall total, while fees from high yield debt totaled $3.5 billion or 30% of overall DCM fees. High yield underwriting fees increased 34% compared to first half 2012.

Global DCM Review - Debt, Equity & Equity Related

 Source - Thomson Reuters

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