Debt Capital Markets Review 2015 - JPMorgan leads the way

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Global debt capital markets activity falls 13%

Overall global debt capital markets activity totaled US$5.3 trillion during full year 2015, a 13% downtick compared to full year 2014 and the slowest annual period for global debt capital markets activity since 2011. Fourth quarter global debt activity decreased 13% compared to the third quarter of 2015, marking the slowest three-month period for global debt offerings since the third quarter of 2011 and the third consecutive quarterly percentage decline.

US investment grade corporate debt breaks all-time annual record

High Grade corporate debt offerings targeted to the US marketplace totaled US$1.2 trillion during full year 2015, an increase of 8% compared to a year ago and the strongest annual period for the asset class since records began in 1980. Fourth quarter activity totaled $254.1 billion, a decline of 6% compared to the third quarter of this year.

Global high yield volume down 22% as second half activity falls 58%

The volume of global high yield corporate debt reached US$347.2 billion during full year 2015, a 22% decrease compared to full year 2014 and the slowest annual period for global high yield issuance since 2011. Fourth quarter 2015 high yield issuance totaled US$48.8 billion, bringing overall second half volume to US$103.1 billion, a 58% decline compared to the first half of 2015 and the slowest six month period for high yield offerings since the second half of 2011.

Average healthcare and tech offerings top $1 billion

Debt capital markets activity in the Technology sector totaled US$153.0 billion during full year 2015, an increase of 42% compared to year-ago levels. Consumer Staples and Healthcare activity saw strong year-over-year growth, registering increases of 31% and 30%, respectively. Average deal size in the Healthcare sector led all industries this year, with the average deal totaling nearly US$1.3 billion. Materials offerings registered the steepest declines so far this year, down nearly 40% compared to a year ago.

Emerging markets corporate debt down 40%

Corporate debt from emerging markets issuers totaled US$192.6 billion during full year 2015, a 40% decrease from a year ago. Nearly 56% of all emerging markets corporate debt during the year was raised by issuers in India, Mexico and Malaysia and Russia. Issuance from corporations in Brazil totaled US$10.7 billion, a decline of 82% compared to a year ago.

JP Morgan tops global debt league table

JP Morgan held the top spot for global debt underwriting during full year 2015, with proceeds of US$395.0 billion and an increase of 0.4 market share points. Barclays moved to second place from fourth with a market share gain of 0.8 points, while Citi maintained third place.

Overall debt underwriting fees decline 17%

According to Thomson Reuters/Freeman Consulting, estimated fees from DCM activity totaled US$19.9 billion during full year 2015, a decrease of 17% year-on-year. Fees from high grade debt totaled US$10.4 billion (a 52% share), while fees from high yield debt totaled $4.3 billion. High yield fees decreased 24% compared to a year ago, while investment grade fees decreased 12%.

Global Debt Equity Related 2015: Thomson Reuters

Source: Thomson Reuters

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