Thomson Reuters: 2013 in Investment Banking

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As global investment banks and their corporate clients continue to navigate the post-2008 macroeconomic and regulatory environment, 2013 offered a stark contrast between the booming capital markets and the continued moderation of corporate deal making.

Investment Banking fees by area: Thomson Reuters

Global CAPITAL RAISING by corporations and municipalities totaled $10.9 trillion during full year 2013, a 9% increase compared to full year 2012 and the strongest annual period for capital markets issuance, municipal bonds and syndicated loans since prior to the financial crisis

INVESTMENT GRADE CORPORATE DEBT issuers in the United States raised over $1 trillion for the second consecutive year in 2013, the best annual period on record. A record-breaking $49 billion offering from Verizon Communications pushed proceeds over $1 trillion as number of issues fell 12% over 2012

Worldwide MERGER activity totaled $2.4 trillion during full year 2013, a 6% decline compared to full year 2012. As a percentage of global gross domestic product (GDP), the value of announced mergers accounts for 3.3%, the smallest percentage of global GDP since 1995 when deal making accounted for 3.1%

Since 1993, the correlation between quarterly announced worldwide MERGER & ACQUISITION activity and the S&P 500 Index stands at .80. Prior to the financial crisis in 2008, the correlation between global deal making and the S&P 500 was .87 and since 2008 stands at just .39

Global INITIAL PUBLIC OFFERINGS totaled $165 billion during full year 2013, a 40% increase compared to 2012. Dollars raised by listings in the United States, which have accounted for 36% of global proceeds over the last two years, registered the strongest year since 2000

EUROPEAN M&A activity reached $552 billion during full year 2013, a 30% decline compared to a year ago and the slowest year for deal making in the region in a decade. European targets accounted for just 23% of worldwide announced M&A during 2013, the lowest percentage since 1988

The collective share of global Investment Banking fees among the TOP FIVE BANKS -- JP Morgan, Bank of America Merrill Lynch, Goldman Sachs, Morgan Stanley and Citi -- hit 32% during full year 2013, the highest percentage for these firms since 2009

Worldwide M&A advisory fees reached $19.1 billion during full year 2013, a 12% decline compared to 2012. BOUTIQUE AND INDEPENDENT advisory firms took in 30% of completed M&A fees during 2013, the highest percentage for the combined group since fee records began in 2000

With market-leading positions in global initial public offerings, follow-on offerings and convertible bonds, Goldman Sachs captured 11.4% of overall global EQUITY CAPITAL MARKETS activity during full year 2013 for the firm’s third consecutive first-place finish and strongest share of the market in a decade

Global Investment Banking fees totaled $79.8 billion in 2013, up 3% compared to 2012. Within the top 10 firms, just UBS, Credit Suisse and Barclays saw declining market share this year. Since 2000, the top SWISS BANKS have seen a marked decline in share across M&A and Capital Markets activity.

Source: Thomson Reuters

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