Global debt capital markets activity falls 6%
Overall global debt capital markets activity totaled US$1.8 trillion during the first quarter of 2017, a 6% decrease compared to the first quarter of 2016 and the slowest opening period for global debt capital markets activity since 2014. First quarter global debt activity increased 30% compared to the fourth quarter of last year.
US investment grade corporate debt breaks all-time quarterly record
High grade corporate debt offerings targeted to the US marketplace totaled US$377.9 trillion during the first quarter of 2017, a 5% increase compared to 2016. Driven by triple-digit percentage gains in the Telecom and Consumer Products sectors, this marked the fourth consecutive opening quarter to surpass the previous all-time record.
Global high yield volume nearly triples
The volume of global high yield corporate debt reached US$124.3 billion during the first quarter of 2017, nearly triple the levels seen during the first quarter of 2016 and the strongest first quarter for global high yield issuance in two years. United States high yield issuers accounted for 56% of the quarterly total, down from 67% a year ago. China and the United Kingdom accounted for 6.8% and 6.0%, respectively.
Consumer products offerings up 84%; real estate & consumer staples lead decliners
DCM activity from Consumer Products issuers totaled US$32.5 billion during the first quarter of 2017, registering an industry-leading increase of 84% compared to year-ago levels. Real Estate and Consumer Staples activity saw the steepest year-over-year declines, registering decreases of 35% and 21%, respectively. Government & Agency and Financial offerings accounted for a combined 70% of issuance during the quarter 2016, down from 74% a year ago.
Emerging markets corporate debt up 91%
Corporate debt from emerging markets issuers totaled US$80.2 billion during the first quarter of 2017, up 91% compared to last year. Corporate debt issuers from India, Brazil and Malaysia accounted for 44% of first quarter 2017 activity. Issuance from corporations in Russia totaled US$5.6 billion, more than double levels seen during the first quarter of 2016.
JP Morgan tops global debt league table
JP Morgan held the top spot for global debt underwriting during the first quarter 2017 with proceeds of US$129.4 billion and an increase of 1.2 market share points. Citi maintained second place with a market share increase of 1.2 points, while Bank of America Merrill Lynch moved into third place. Morgan Stanley moved into fifth place from eighth a year ago, with an uptick of 1.5 market share points.
Overall debt underwriting fees increase 21%
According to estimates, underwriting fees from DCM activity totaled US$7.2 billion during the first quarter of 2017, an increase of 21% year-on-year.