2013 Debt Capital Markets - JPMorgan retains crown, Goldman moves up

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JPMorgan top of the heap again, Goldman on the rise.

GLOBAL DEBT CAPITAL MARKETS ACTIVITY FALLS 2%

Overall global debt capital markets activity totaled US$5.6 trillion during full year 2013, a decline of 2% from full year 2012 and the slowest annual period for global debt capital markets activity since 2011. Fourth quarter global debt activity decreased 2% compared to the third quarter of 2013 and marked the slowest quarter for debt issuance since the second quarter of 2012.

US INVESTMENT GRADE CORPORATE DEBT TOPS US$1 TRILLION

Investment grade corporate debt offerings targeting the US marketplace totaled US$1.0 trillion during full year 2013, narrowly besting last year’s total and setting an all-time record for US issuance. Companies based in the United States accounted for 64% of issuance this year, up from 60% during full year 2012. Issuers based in Canada accounted for 5% of US marketplace corporate debt, followed by the United Kingdom and Japan with 4% and 3%, respectively.

ALL-TIME RECORD GLOBAL HIGH YIELD; SIXTH CONSECUTIVE US$100 BILLION+ QUARTER

The volume of global high yield corporate debt reached US$462.0 billion during full year 2013, a 19% increase compared to full year 2012 and the strongest annual period for high yield debt activity since records began in 1980. High yield issuance from issuers in the U.S. accounted for 56% of activity, compared to 72% a year ago. Issuance from European issuers more than doubled compared to full year 2012.

FINANCIALS ACCOUNT FOR 47% OF 2013 DCM ACTIVITY

Debt capital markets activity in the financials sector totaled US$2.6 trillion during full year 2013, accounting for 47% of all new issuance this year. Telecom and high technology activity saw the strongest year-over-year growth registering increases of 65% and 52% respectively over a year ago. Bolstered by the year’s record-breaking $49.0 billion offering from Verizon Communications, average deal size in the telecom sector led all industries this year, with the average deal totaling US$1.2 billion.

EMERGING MARKETS CORPORATE DEBT DOWN 6%

New corporate debt from emerging markets issuers totaled US$297.0 billion during full year 2013, a 6% decrease from last year at this time. 49% of all emerging markets corporate debt during the year was raised by issuers in Russia, India and Mexico.

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 full year 2013 debt underwriting, with total proceeds of US$424.8 billion and a decrease of 0.5 market share points. Deutsche Bank maintained the number two spot during full year 2013, with 6.8% market share. Based on underwriting fees for full year 2013, JP Morgan topped all other underwriters with an estimated $1.8 billion, or 8.4% of overall fees this year.

DEBT UNDERWRITING FEES DOWN 2%

According to Thomson Reuters/Freeman Consulting, estimated fees from DCM activity totaled US$21.9 billion during full year 2013, a decline of 2% compared to full year 2012. Fees from high grade debt underwriting totaled US$10.2 billion (47% of the market), while fees from high yield debt totaled $6.4 billion (29% of overall DCM fees). High yield underwriting fees increased 5% compared to the full year 2012.

Global Debt, Equity & Equity-related (A1)
Jan 1 - Dec 31

Global Debt, Equity & Equity Related (A1) Jan 1 - Dec 31 2013

Source - Thomson Reuters

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