Global debt capital markets activity up 11%

Overall global debt capital markets activity totaled US$3.5 trillion during the first half of 2016, an 11% increase compared to the first six months of 2015 and the strongest opening period for global debt capital markets activity since 2007. Second quarter global debt activity increased 9% compared to the first quarter of this year.

US investment grade corporate debt pulls back for first time since 2010

High grade corporate debt offerings targeted to the US marketplace totaled US$341.8 billion during the second quarter of 2016, a 5% decrease compared to the previous quarter. US high grade debt totaled US$700.0 billion during first half 2016, the first pull back for the asset class during a first half since 2010.

Global high yield volume down 37%

The volume of global high yield corporate debt reached US$154.3 billion during the first half of 2016, a 37% decrease compared to the first six months of 2015 and the slowest first half for global high yield issuance since the first half of 2010. Second quarter issuance totaled US$108.9 billion, more than double first quarter 2016 activity, halting five consecutive quarters of declining high yield debt issuance.

Government & agency offerings up 53%; healthcare & energy lead decliners

Debt capital markets activity from government & agency issuers totaled US$936.8 billion during the first half of 2016, registering an industry-leading increase of 53% compared to year-ago levels. Healthcare and Energy & Power activity saw the steepest year-over-year declines, registering decreases of 31% and 23%, respectively. Government & agency and financial offerings account for a combined 73% of first half 2016 issuance, up from 68% a year ago.

Emerging markets corporate debt down 23%

Corporate debt from emerging markets issuers totaled US$95.5 billion during the first half of 2016, down 23% decrease from a year ago. Corporate debt issuers from Mexico, India, Brazil, and Malaysia accounted for 52% of first half 2016 activity. Issuance from corporations in Russia totaled US$6.2 billion, a decline of 15% compared to a year ago, while offerings from Brazil increased 31% to US$12.2 billion.

JP Morgan tops global debt league table

JP Morgan held the top spot for global debt underwriting during the first half of 2016 with proceeds of US$233.3 billion and a decrease of 1.0 market share point. Citi maintained second place with a market share decline of 0.4 points, while Bank of America Merrill Lynch moved into third place. Morgan Stanley fell to eighth place from sixth a year ago, registering a loss of 1.3 market share points.

Overall debt underwriting fees decline 9%

According to Thomson Reuters/Freeman Consulting, estimated fees from DCM activity totaled US$11.2 billion during the first half of 2016, a decrease of 9% year-on-year.

Source: Thomson Reuters