2014 debt capital markets review - no stopping JPMorgan

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Global debt capital markets activity up 2%

Overall global debt capital markets activity totaled US$5.7 trillion during full year 2014, an uptick of 2% compared to 2013 and the strongest annual period for global debt capital markets activity since 2009. Fourth quarter global debt activity decreased 14% compared to the third quarter of 2014, marking the slowest quarter for global debt offerings since the fourth quarter of 2011

US investment grade corporate debt breaks all-time record

High Grade corporate debt offerings targeted to the US marketplace totaled US$1.1 trillion during full year 2014, an increase of 9% compared to a year ago and the strongest annual period for the asset class since records began in 1980. Companies based in the United States accounted for 61% of issuance, down from 64% during full year 2013. Issuers based in the United Kingdom, Canada and Japan each accounted for 4% of US marketplace issuance during full year 2014.

Quarterly high yield volume falls 25%

The volume of global high yield corporate debt reached US$71.9 billion during the fourth quarter of 2014, a 23% decline compared to the third quarter of this year and the slowest quarter for global high yield issuance since the second quarter of 2012 (US$54.8 billion). Full year 2014 high yield issuance totaled US$441.5 billion, narrowly falling below the all-time annual record set during full year 2013 (US$442.5 billion).

Financials account for 51% of DCM activity

Debt capital markets activity in the Financials sector totaled US$2.9 trillion during full year 2014, accounting for 51% of all new issuance this year. Media & Entertainment and Financials activity saw the strongest year-over-year growth, each registering an increase of 10% over a year ago. Average deal size in the Healthcare sector led all industries this year, with the average deal totaling US$1.1 billion.

Emerging markets corporate debt down 11%

New corporate debt from emerging markets issuers totaled US$348.6 billion during full year 2014, an 11% decrease from last year. 54% of all emerging markets corporate debt during the year was raised by issuers in Brazil, India, Mexico and Malaysia. Corporate debt from issuers in Russia totaled US$17.2 billion, down 74% compared to full year 2013.

JP Morgan tops global debt league table

JP Morgan maintained the top spot for global debt underwriting during full year 2014, with total proceeds of US$425.2 billion and a decrease of 0.2 market share points. Deutsche Bank maintained the second position, while Citi moved to third place from fourth. Barclays and Bank of America Merrill Lynch rounded out the top five.

Overall debt underwriting fees up 3%

According to Thomson Reuters/Freeman Consulting, estimated fees from DCM activity totaled US$22.8 billion during full year 2014, an increase of 3% year-on-year. Fees from high grade debt totaled US$10.8 billion (a 47% share), while fees from high yield debt totaled $5.8 billion (a 25% share). High yield fees decreased 6% compared to 2013, while global investment grade fees increased 3%.

Global Debt, Equity & Equity Related 2014 (A1)

Source: Thomson Reuters

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