Global debt capital markets activity falls 11%
Overall global debt capital markets activity totaled US$3.5 trillion during the first half of 2017, an 11% decrease compared to the first half of 2016 and the slowest opening six-month period for global debt capital markets activity since 2015. Second quarter global debt activity decreased 9% compared to the first quarter of this year, while number of issues rose 8%.
US investment grade debt pulls back from all-time quarterly record
High grade corporate debt offerings targeted to the US marketplace totaled US$327.6 billion during the second quarter of 2017, a 15% decrease compared to the first quarter of 2017, which ranked as the largest all-time quarter for US investment grade corporate debt since records began in 1980. For the first quarter of 2017, US investment grade corporate debt totaled US$713.6 billion, up 1% compared to a year ago.
Global high yield volume up 44%
The volume of global high yield corporate debt reached US$223.3 billion during the first half of 2017, an increase of 44% compared to the first half of 2016 and the strongest opening six month period for global high yield issuance in two years. United States high yield issuers accounted for 54% of the quarterly total, down from 61% a year ago. China and the United Kingdom accounted for 7% and 6%, respectively.
Telecom offerings up 87%; government & agencies, real estate lead decliners
DCM activity from Telecommunications issuers totaled US$99.3 billion during the first half of 2017, registering an industry- leading increase of 87% compared to year-ago levels. Government & Agency and Real Estate activity saw the steepest year-over-year declines, down 31% and 22%, respectively. Government & Agency and Financial offerings accounted for a combined 70% of issuance during the first half of 2017, down from 73% a year ago.
Emerging markets corporate debt up 56%
Corporate debt from emerging markets issuers totaled US$167.4 billion during the first half of 2017, up 56% compared to last year. Corporate debt issuers from India, Brazil, Russia and Mexico accounted for 47% of first half 2017 activity. Issuance from corporations in India totaled US$30.6 billion, an increase of 73% compared to the first half of 2016.
Citi tops global debt league table
Citi took the top spot for global debt underwriting during the first half of 2017 with proceeds of US$247.2 billion and an increase of 1.5 market share points. JP Morgan fell to second place with a market share increase of 0.9 points, while Bank of America Merrill Lynch maintained third place. Morgan Stanley moved into fifth place from eighth a year ago, with an uptick of 1.2 market share points.
Overall debt underwriting fees increase 5%
According to estimates, underwriting fees from DCM activity totaled US$14.2 billion during the first half of 2017, an increase of 5% year-on-year.