Thomson Reuters Debt Capital Markets Q1 Review - JPMorgan on top

Thomson Reuters Logo

Global Debt Capital Markets activity falls 4%

Overall global debt capital markets activity totaled US$1.6 trillion during the first quarter of 2014, a decline of 4% from first quarter 2013 and the slowest annual start for global debt capital markets activity since 2008. First quarter global debt activity increased 22% compared to the fourth quarter of 2014 and marked the strongest quarter for debt issuance since the first quarter of last year.

Best start for US Investment Grade Corporate Debt on record

High Grade corporate issues targeted into the US marketplace totaled US$311.5 billion during the first quarter, an increase of 12% compared to a year ago and the strongest start for the asset class since records began in 1980. Companies based in the United States accounted for 61% of issuance, down from 68% during first quarter of 2013. Issuers based in the U.K. and Japan accounted for 5% of US marketplace issues, followed by France, with 4%.

High Yield Corporate Debt down 15%; seventh consecutive US$100 billion+ quarter

The volume of global high yield corporate debt reached US$108.9 billion during the first quarter of 2014, a 9% decrease compared to a year ago and the slowest annual start for high yield debt activity in two years. High yield issuance from issuers in the U.S. accounted for 51% of activity, compared to 60% a year ago. Issuance from European issuers totaled US$42.7 billion during the first quarter, up 31% compared to last year.

Financials account for 47% of DCM activity

Debt capital markets activity in the financials sector totaled US$737.6 billion during the first quarter of 2014, accounting for 47% of all new issuance this year. Healthcare and high technology activity saw the strongest year-over-year growth, registering increases of 68% and 37%, respectively, over a year ago. Bolstered by two multi-billion dollar offerings from Verizon Communications, average deal size in the telecom sector led all industries this year, with the average deal totaling US$1.1 billion.

Emerging Markets Corporate Debt down 29%

New corporate debt from emerging markets issuers totaled US$68.2 billion during the first quarter of 2014, a 29% decrease from last year at this time. 54% of all emerging markets corporate debt during the quarter was raised by issuers in Brazil, Mexico and India. Corporate debt from issuers in Russia totaled US$6.2 billion, down 70% compared to the first quarter of 2013.

JP Morgan tops Global Debt league tables

JP Morgan maintained the top spot for first quarter 2014 debt underwriting, with total proceeds of US$114.5 billion and a decrease of 0.6 market share points. Barclays moved into the number two position during the quarter, with 6.6% market share, while Deutsche Bank fell from second place to fifth.

Debt Underwriting fees down 17%

According to Thomson Reuters/Freeman Consulting, estimated fees from DCM activity totaled US$5.5 billion during the first quarter of 2014, a decline of 17% year-on-year. Fees from high grade debt underwriting totaled US$2.7 billion (a 49% share), while fees from high yield debt totaled $1.4 billion (a 25% share). High yield underwriting fees decreased 26% compared to the first quarter of 2013.

Global Debt Equity Related A1 Q1 2014

Source: Thomson Reuters

JefferiesAnd the Best Place to Work in the global financial markets 2016 is...

Register for Financial Markets News Alerts