July Investment Grade Debt Rebounds 27% from June
A trio of multi-billion dollar investment grade corporate debt offerings from US companies topped the list of weekly new issues and pushed the monthly volume of global investment grade corporate debt to $165.9 billion for the month of July, up 27% from last month, which ranked as the slowest month for corporate debt since April 2012.
Issuers in the financial, energy & power and industrials sectors accounted for 77% of monthly new issuance, while companies based in the United States, Canada and China accounted for just over 50% of July's corporate debt offerings. Year-to-date, global investment grade debt totals $1.6 trillion, a decline of 1% from a year ago.
Morgan Stanley lead all underwriters for the month of July with 7.6% market share and currently ranks fourth for year-to-date investment grade underwriting, up from seventh a year ago.
Hospital M&A Hits 6-Year High
Community Health Systems $7.4 billion bid for Health Management Associates (HMA) pushed the volume of worldwide announced deal making in the hospital sector to $14.7 billion so far this year, more than triple activity seen last year and the strongest year-to-date period for M&A in the sector since 2007, when Community Health Systems acquired Tennessee-based Triad Hospitals for $6.4 billion. Hospitals in the United States have accounted for 83% of activity in the sector this year, compared to 39% last year at this time. The United Kingdom and France round out the top three target countries for deals in the sector.
Bank of America Merrill Lynch, which has advised on the top three hospital M&A deals this year, lead by Community/HMA, ranks as the top financial advisor in the sector, followed by Credit Suisse and Morgan Stanley, tied for second place.
Cross-border M&A Falls 31% from 2012
The $19.3 billion combination of France's Publicis Groupe and New York-based Omnicom Group and Perrigo's $8.5 billion bid for Ireland's Elan Corp brought the volume of announced cross-border M&A to $384.0 billion for year-to-date 2013, a 31% decline compared to a year ago period and the slowest year-to-date for cross-border deal making since 2009. Energy and power, media and consumer staples deals account for 38% of cross-border merger activity, on par with last year's activity. United States target account for 23% of cross-border targets this year, followed by Germany (11%) and the United Kingdom (8%).
Morgan Stanley and Goldman Sachs lead the rankings of advisors on cross-border deals with just over $103 billion apiece. JP Morgan ranks third with $65.0 billion in cross-border assignments this year.