Global debt capital markets activity up 27%.
Overall global debt capital markets activity totaled US$5.5 trillion during the first nine months of 2016, a 27% increase compared to the first nine months of 2015 and the strongest opening nine-month period for global debt capital markets activity since 2007. Third quarter global debt activity decreased 13% compared to the second quarter of this year.
US investment grade corporate debt hits record US$1.1 trillion
High grade corporate debt offerings targeted to the US marketplace totaled US$1.1 trillion during the first nine months of 2016, a 9% increase compared to the first nine months of 2015. This marks the eighth consecutive year-to-date increase for US marketplace investment grade debt since the asset class registered a 27% decline in 2008.
Global high yield volume down 21%
The volume of global high yield corporate debt reached US$238.7 billion during the first nine months of 2016, a 21% decrease compared to the first nine months of 2015 and the slowest first nine months for global high yield issuance since the first nine months of 2010. Third quarter issuance totaled US$84.2 billion, a 23% decrease compared to the second quarter of this year, while number of offerings in the third quarter decreased 3% comparead to the previous quarter.
Government & agency offerings up 76%; healthcare & media lead decliners
DCM activity from government & agency issuers totaled US$1.5 trillion during the first nine months of 2016, registering an industry- leading increase of 76% compared to year-ago levels. Healthcare and Media activity saw the steepest year-over-year declines, registering decreases of 21% and 10%, respectively. Government & agency and financial offerings account for a combined 73% of issuance during the first nine months of 2016, up from 69% a year ago.
Emerging markets corporate debt down 23%
Corporate debt from emerging markets issuers totaled US$192.5 billion during the first nine months of 2016, up 18% from a year ago. Corporate debt issuers from India, Brazil, Mexico and Israel accounted for 51% of first nine months 2016 activity. Issuance from corporations in Russia totaled US$12.6 billion, an increase of 24% compared to a year ago.
JP Morgan tops global debt league table
JP Morgan held the top spot for global debt underwriting during the first nine months of 2016 with proceeds of US$349.3 billion and a decrease of 1.1 market share points. Citi moved into second place with a market share decline of 0.6 points, while Bank of America Merrill Lynch maintained third place. Deutsche Bank fell to seventh place from fifth a year ago, registering a loss of 1.6 market share points.
Overall debt underwriting fees decline 9%
According to Thomson Reuters/Freeman Consulting, estimated fees from DCM activity totaled US$18.1 billion during the first nine months of 2016, a decrease of 9% year- on-year.
Have something to tell us about this article?