Debt capital markets review Q1 2015: Thomson Reuters

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Global debt capital markets activity falls 5%.

Overall global debt capital markets activity totaled US$1.6 trillion during the first quarter of 2015, a 5% downtick compared to the first quarter of 2014 and the slowest opening period for global debt capital markets activity since 2008. First quarter global debt activity increased 34% compared to the fourth quarter of 2014, which marked the slowest quarter for global debt offerings in three years.

US investment grade corporate debt breaks all-time quarterly record

High Grade corporate debt offerings targeted to the US marketplace totaled US$341.9 billion during the first quarter of 2015, an increase of 8% compared to a year ago and the strongest three-month period for the asset class since records began in 1980. Companies based in the United States accounted for 68% of issuance, up from 60% during the first quarter of 2014. Issuers based in the United Kingdom, Japan and Germany accounted for 14% of US marketplace issuance during the first quarter of 2015.

Global high yield volume up 8%

The volume of global high yield corporate debt reached US$120.2 billion during the first quarter of 2015, an 8% increase compared to the first quarter of 2014 and the strongest first quarter for global high yield issuance in two years. First quarter 2015 high yield issuance increased 65% compared to the fourth quarter of last year (US$72.6 billion).

Healthcare debt offerings double

Debt capital markets activity in the Healthcare sector totaled US$68.6 billion during the first quarter of 2015, more than doubling year ago levels. Technology and Retail activity saw strong year-over-year growth, each registering an increase of nearly 55% over a year ago. Average deal size in the Healthcare sector led all industries this year, with the average deal totaling US$2.0 billion. Real Estate and Telecom offerings registered the steepest first quarter declines, down nearly 37%.

Emerging markets corporate debt down 29%

New corporate debt from emerging markets issuers totaled US$59.5 billion during the first quarter of 2015, a 29% decrease from last year. Just over 52% of all emerging markets corporate debt during the quarter was raised by issuers in India, Mexico and Malaysia. Issuance from corporations in Brazil and Russia fell 95% and 66%, respectively, compared to the first quarter of 2014.

JP Morgan tops global debt league table

JP Morgan maintained the top spot for global debt underwriting during the first quarter of 2015, with total proceeds of US$120.9 billion and an increase of 0.5 market share points. Barclays maintained the second position, while Citi moved to third place from fourth.

Overall debt underwriting fees up 5%

According to Thomson Reuters/Freeman Consulting, estimated fees from DCM activity totaled US$6.1 billion during the first quarter of 2015, an increase of 5% year-on-year. Fees from high grade debt totaled US$3.0 billion (a 49% share), while fees from high yield debt totaled $1.6 billion (a 26% share). High yield fees increased 22% compared to a year ago, while global investment grade fees increased 2%.

Global Debt, Equity & Equity-Related (A1) Q1 2015: Thomson Reuters

Source: Thomson Reuters

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