Global debt capital markets activity falls 4%
Overall global debt capital markets activity totaled US$5.6 trillion during the first nine months of 2017, a 4% decrease compared to the first nine months of 2016 and the slowest opening nine-month period for global debt capital markets activity since 2015. Third quarter global debt activity decreased 10% compared to the second quarter of this year, as the number of issues fell 14%.
Ninth consecutive year-over-year gain for US investment grade debt
High grade corporate debt offerings targeted to the US marketplace totaled US$1.1 trillion during the first nine months of 2017, a 1% increase compared to the first nine months of 2016, and the ninth consecutive year-over-year increase for the asset class. During the third quarter of 2017, US investment grade corporate debt totaled US$356.1 billion, up 7% compared to the second quarter of the year.
Global high yield volume up 31%
The volume of global high yield corporate debt reached US$317.2 billion during the first nine months of 2017, an increase of 31% compared to the same time last year and the strongest opening nine month period for global high yield issuance in three years. United States high yield issuers accounted for 54% of total issuance, down from 60% a year ago. China and the United Kingdom accounted for 7% and 6%, respectively.
Telecom offerings up 66%; healthcare, government & agency lead decliners
DCM activity from Telecommunications issuers totaled US$149.2 billion during the first nine months of 2017, registering an industry- leading increase of 66% compared to year-ago levels. Healthcare and Government & Agency activity saw the steepest year-over-year declines, down 25% and 15%, respectively. Government & Agency and Financial offerings accounted for a combined 70% of issuance during the first nine months of 2017, down from 72% a year ago.
Emerging markets corporate debt up 29%
Corporate debt from emerging markets issuers totaled US$255.7 billion during the first nine months of 2017, up 28% compared to last year. Corporate debt issuers from India, Brazil, Mexico and Russia accounted for 45% of activity during the first nine months. Issuance from corporations in India totaled US$43.2 billion, an increase of 26% compared to the first nine months of 2016.
Citi tops global debt league table
Citi took the top spot for global debt underwriting during the first nine months of 2017 with proceeds of US$365.3 billion and an increase of 1.0 market share point. JP Morgan fell to second place with a market share decrease of 0.1 points, while Bank of America Merrill Lynch maintained third place. Barclays and Goldman Sachs rounded out the top five global debt bookrunners, with Goldman Sachs moving into the top five for the first time since records began in 1980.
Overall debt underwriting fees increase 10%
According to estimates, underwriting fees from DCM activity totaled US$22.6 billion during the first nine months of 2017, an increase of 10% year-on-year.