DCM review H1 2015: Thomson Reuters - JPM on top, Citi / Bof A rise

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Global debt capital markets activity falls 12%

Overall global debt capital markets activity totaled US$3.0 trillion during the first half of 2015, a 12% downtick compared to the first half of 2014 and the slowest opening six- month period for global debt capital markets activity since 2012. Second quarter global debt activity decreased 24% compared to the first quarter of 2015, which marked the slowest second quarter for global debt offerings in five years.

US investment grade corporate debt breaks all-time first half record

High Grade corporate debt offerings targeted to the US marketplace totaled US$703.0 billion during the first half of 2015, an increase of 10% compared to a year ago and the strongest six-month period for the asset class since records began in 1980. Second quarter activity totaled $355.0 billion, besting the previous record set during the first quarter of this year by 2%. Companies based in the United States accounted for 69% of issuance, up from 59% during the first half of 2014.

Global high yield volume down 12%

The volume of global high yield corporate debt reached US$241.6 billion during the first half of 2015, an 12% decrease compared to the first half of 2014 and the slowest first half for global high yield issuance in two years. Second quarter 2015 high yield issuance decreased 27% compared to the record-breaking second quarter of last year (US$163.0 billion).

Healthcare debt offerings double

Debt capital markets activity in the Healthcare sector totaled US$117.5 billion during the first six months of 2015, more than doubling year-ago levels. Technology and Consumer Staples activity saw strong year-over-year growth, registering increases of 56% and 48%, respectively, compared to a year ago. Average deal size in the Healthcare sector led all industries this year, with the average deal totaling nearly US$1.5 billion. Real Estate offerings registered the steepest first half declines, down nearly 30% compared to first half 2014.

Emerging markets corporate debt down 43%

New corporate debt from emerging markets issuers totaled US$110.7 billion during the first half of 2015, a 43% decrease from last year. Nearly 54% of all emerging markets corporate debt during the half was raised by issuers in India, Mexico and Malaysia and the United Arab Emirates. Issuance from corporations in Brazil and Russia fell 83% and 62%, respectively, compared to the first half of 2014.

JP Morgan tops global debt league table

JP Morgan maintained the top spot for global debt underwriting during the first half of 2015, with total proceeds of US$232.4 billion and an increase of 0.6 market share points. Citi moved to second place from fourth, while Barclays fell to third place from second.

Overall debt underwriting fees decline 10%

According to Thomson Reuters/Freeman Consulting, estimated fees from DCM activity totaled US$11.9 billion during the first half of 2015, a decrease of 10% year-on-year. Fees from high grade debt totaled US$6.0 billion (a 50% share), while fees from high yield debt totaled $3.1 billion (a 26% share). High yield fees decreased 12% compared to a year ago, while global investment grade fees decreased 4%.

Debt, Equity, Equity Related (A1) FH 2015: Thomson Reuters

Source: Thomson Reuters

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