Worldwide M&A activity totals $817.6 billion, down 27% compared to YTD 2015
Two leveraged buyouts involving Chinese companies topped the list of weekly mergers and pushed the level of deal making with China involvement to $256.3 billion so far this year, a 32% increase compared to a year ago and the strongest year-to-date period, by dollar volume and percentage of worldwide M&A, since records began in 1980. The $3.5 billion management-led buyout for Autohome Inc and a $3.4 billion bid for US-based Lexmark International by a Chinese consortium brings technology deals by Chinese buyers and sellers to $49.4 billion, a 91% increase compared to year-to-date 2015 and 19% of total activity, second behind materials which accounts for one-quarter of overall Chinese deal making so far this year.
Financials Push Investment Grade Corporate Debt Up 6% Compared to 2015
Wells Fargo and Morgan Stanley tapped the Investment Grade corporate debt market this week, pushing overall issuance to a year-to-date record of $1.1 trillion, an increase of 6% compared a year ago. Registering a 13% increase compared to last year, financial issuers account for 60% of total volume so far this year, up slightly from year-to-date 2015. Within the non-financial category, energy & power and industrials issuers each account for 8% of year-to-date activity. JP Morgan leads the ranking of global investment grade debt underwriters with 6.2% of the market, down from 7.4% a year ago.