Global DCM review Q2 2014: Thomson Reuters - JPMorgan top

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Global Debt Capital Markets activity up 4%

Overall global debt capital markets activity totaled US$3.2 trillion during the first half of 2014, an uptick of 4% compared to first half 2013 and the strongest six-month start for global debt capital markets activity since 2009. Second quarter global debt activity decreased 6.5% compared to the first quarter of 2014 but registered an 8% increase compared to the second quarter of last year.

Best start for US investment grade corporate debt on record

High Grade corporate debt offerings targeted to the US marketplace totaled US$614.6 billion during the first half of 2014, an increase of 14% 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 59% of issuance, down from 64% during first half 2013. Issuers based in Australia, Canada and the United Kingdom each accounted for 4% of US marketplace issuance during the first half.

All-time quarterly record for global high yield

The volume of global high yield corporate debt reached US$148.3 billion during the second quarter of 2014, an all-time quarterly record and 15% greater than the previous quarterly record set during the first quarter of 2013 (US$128.5 billion). High yield issuance from issuers in the U.S., France and the United Kingdom accounted for 63% of first half 2014 proceeds, which totaled US$260.5 billion, up 9% compared to a year ago.

Financials account for 48% of DCM activity

Debt capital markets activity in the financials sector totaled US$1.5 trillion during the first half of 2014, accounting for 48% of all new issuance this year. Consumer products and media and entertainment activity saw the strongest year-over-year growth, registering increases of 23% and 15%, respectively, over a year ago. 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 18%

New corporate debt from emerging markets issuers totaled US$163.2 billion during the first half of 2014, an 18% decrease from last year at this time. 52% of all emerging markets corporate debt during the half was raised by issuers in Brazil, Mexico, India and the United Arab Emirates. Corporate debt from issuers in Russia totaled US$9.2 billion, down 78% compared to the first half of 2013.

JP Morgan tops global debt league table

JP Morgan maintained the top spot for first half 2014 debt underwriting, with total proceeds of US$236.0 billion and a decrease of 0.3 market share points. Deutsche Bank and Barclays maintained the second and third positions, respectively, while HSBC moved from eighth place to fifth.

Overall debt underwriting fees flat

According to Thomson Reuters/Freeman Consulting, estimated fees from DCM activity totaled US$12.3 billion during the first half of 2014, an increase of 0.7% year-on-year. Fees from high grade debt underwriting totaled US$5.5 billion (a 45% share), while fees from high yield debt totaled $3.4 billion (a 28% share). High yield underwriting fees increased 1% compared to the first half of 2013, while global investment grade fees declined 5%.

Global Debt Equity Related Q2 2014: Thomson Reuters

Source: Thomson Reuters

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