Thomson Reuters Debt Capital Markets Review Year To Date

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Here's the Thomson Reuters debt capital markets review

GLOBAL DEBT CAPITAL MARKETS DOWN 5% FROM 2010

Overall global debt capital markets activity totaled US$3.9 trillion during the first nine months of 2011, a 5% decrease from the first nine months of 2010. Third quarter global debt activity totaled US$903.1 billion, a 34% decrease from the second quarter of this year and the slowest quarter for debt capital markets activity since the fourth quarter of 2008.

GLOBAL HIGH YIELD DEBT TUMBLES 73% IN THIRD QUARTER

The volume of global corporate high yield debt reached US$239.8 billion during the first nine months of 2011, an increase of 10% compared to the first nine months of 2010. Issuers in North America accounted for 68% of overall volume, down from 76% during the first nine months of 2010. European issuers, led by the United Kingdom, Germany and France, comprised 24% of new issuance, up from 20% last year at this time. With US$28.4 billion raised, the third quarter marked the lowest three-month period for global high yield new issues since the first quarter of 2009, and a decline of 73% from the second quarter of 2011.

FINANCIALS ACCOUNT FOR 53% OF 2011 DCM ACTIVITY

Debt capital markets activity in the financials sector totaled $2.1 trillion during the first nine months of 2011, accounting for 53% of all new issues this year. High technology debt capital markets activity saw the strongest year-over-year growth with a 27% increase over the first nine months of 2010, while new issues in the energy & power and consumer products sectors saw year-over-year declines of 21% and 12%, respectively. Average deal size in the telecommunication sector led all industries during the first nine months of 2011, with the average deal totaling $832 million.

EMERGING MARKETS CORPORATE DEBT DOWN 16%

New issuance of corporate debt from emerging markets issuers totaled US$231.5 billion during the first nine months of 2011, down 16% increase over 2010 levels. Issuance was led by issuers from India, Brazil, Mexico and the Russia, which account for nearly 50% of all emerging markets corporate debt this year.

DEUTSCHE BANK TOPS GLOBAL DEBT LEAGUE TABLES

Bolstered by strength in agency and sovereign and European debt underwriting, Deutsche Bank took the top spot for the first nine months of 2011 with total proceeds of $279.1 billion, up from third this time last year. JP Morgan and Barclays Capital round out the top three with just over US$270 billion in underwriting activity during the first nine months of the year. The top three underwriters each account for 7% of global debt capital markets activity. Based on first nine months underwriting fees, JP Morgan topped all other underwriters with an estimated $1.1 billion.

9% DECREASE FOR DEBT UNDERWRITING FEES

According to Thomson Reuters/Freeman Consulting, estimated fees from debt capital markets transactions totaled US$12.9 billion during the first nine months of 2011, down 9% from the first nine months of 2010. Fees from investment grade debt underwriting totaled US$5.3 billion, or 41% of the overall total, while fees from high yield debt underwriting totaled $3.9 billion or 30% of overall DCM fees.

Source - Thomson Reuters

 

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