Global debt capital markets activity falls 13%.
Overall global debt capital markets activity totaled US$4.2 trillion during the first nine months of 2015, a 13% downtick compared to the first nine months of 2014 and the slowest period for global debt capital markets activity since 2011. Third quarter global debt activity decreased 23% compared to the second quarter of 2015, marking the slowest three-month period for global debt offerings since the fourth quarter of 2011 and the second consecutive quarterly percentage decline.
US investment grade corporate debt breaks all-time record
High Grade corporate debt offerings targeted to the US marketplace totaled US$983.3 billion during the first nine months of 2015, an increase of 12% compared to a year ago and the strongest nine-month period for the asset class since records began in 1980. Third quarter activity totaled $276.1 billion, a decline of 23% compared to the second quarter of this year, which ranked as all- time largest three-month period for high grade issuance.
Global high yield volume down 20%
The volume of global high yield corporate debt reached US$297.3 billion during the first nine months of 2015, an 20% decrease compared to the first nine of 2014 and the slowest first half for global high yield issuance since 2012. Third quarter 2015 high yield issuance decreased 57% compared to the second quarter of this year, marking the slowest quarter for high yield offerings since the fourth quarter of 2011.
Healthcare debt offerings double
Debt capital markets activity in the Healthcare sector totaled US$165.9 billion during the first nine months of 2015, more than doubling year-ago levels. Technology and Consumer Staples activity saw strong year-over-year growth, registering increases of 70% and 29%, respectively. Average deal size in the Healthcare sector led all industries this year, with the average deal totaling nearly US$1.5 billion. Materials offerings registered the steepest declines so far this year, down nearly 32% compared to a year ago.
Emerging markets corporate debt down 41%
Corporate debt from emerging markets issuers totaled US$152.3 billion during the first nine months of 2015, a 41% 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 Thailand. Issuance from corporations in Brazil and Russia fell 83% and 49%, respectively, compared to a year ago.
JP Morgan tops global debt league table
JP Morgan held the top spot for global debt underwriting during the first nine months of 2015, with proceeds of US$313.1 billion and an increase of 0.6 market share points. Barclays moved to second place from fourth, while Bank of America Merrill Lynch moved from fifth to third place.
Overall debt underwriting fees decline 14%
According to Thomson Reuters/Freeman Consulting, estimated fees from DCM activity totaled US$16.2 billion during the first nine months of 2015, a decrease of 14% year-on- year. Fees from high grade debt totaled US$8.3 billion (a 51% share), while fees from high yield debt totaled $3.8 billion. High yield fees decreased 20% compared to a year ago, while investment grade fees decreased 8%.