Morgan Stanley top convertibles underwriter year to date

• Convertibles issuance totals $44.97 billion year to date

• Merrill Lynch top convertibles (no synthetics) underwriter year to date

• Convertibles issuance (no synthetics) totals $37.73 billion year to date

New York, July 31 - Morgan Stanley stretched its run at the top of the convertible league tables to four straight months while Merrill Lynch was again the number one firm if investment bank exchangeable offerings are excluded, according to data compiled by Prospect News.

Market activity, however, fell back sharply as the summer took hold, although it remained above year-ago levels.

Morgan Stanley slightly expanded its lead over second placed Citigroup to $0.80 billion as of the end of July, up from $0.65 billion a month earlier.

For July Goldman Sachs & Co. placed first thanks to its role as lead manager of the $726 million offering of convertible senior limited-subordination notes from UAL Corp., sold on behalf of the unions as part of the airline's emergence from Chapter 11.

That deal in fact accounted for one-third of July's total issuance of $2.13 billion excluding synthetics, or about a quarter of the $2.82 billion including synthetics.

While down from June's $9.93 billion ($9.45 billion without the investment bank equity-linkeds), the busiest month since July 2003, activity was still stronger than the $2.40 billion for July 2005 ($2.00 billion excluding investment bank equity-linkeds).

The year-to-date total is now $44.97 billion ($37.73 billion excluding equity-linkeds), far ahead of the $18.86 billion ($16.17 billion excluding equity-linkeds) for the same period of 2005.

The Prospect News figures cover dollar-denominated deals offered in the United States as registered transactions or under Rule 144A. They include deals issued by investment banks linked to a single stock - except where noted.

Meanwhile issuance of all investment bank exchangeables - including those linked to an index or a basket of stock or indexes as well as those linked to a single stock - was $1.07 billion for the month, lifting the year-to-date total to $11.41 billion. July's volume was down slightly from $1.22 billion in June.

Year to date, including investment bank exchangeables

2005 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Morgan Stanley	7.420	70	16.50%	1	2.854	28	15.13%
2	Citigroup	6.621	42	14.72%	4	1.910	23	10.13%
3	Merrill Lynch	6.140	25	13.65%	5	1.731	12	9.18%
4	UBS	5.562	16	12.37%	10	0.762	7	4.04%
5	Goldman Sachs	4.245	32	9.44%	2	2.303	35	12.21%
6	Lehman	4.112	28	9.14%	7	1.493	16	7.92%
7	JPMorgan	3.101	15	6.90%	9	1.357	11	7.20%
8	Banc of America	3.098	19	6.89%	6	1.583	9	8.39%
9	Deutsche Bank	1.076	14	2.39%	3	2.010	9	10.66%
10	Credit Suisse	0.960	44	2.14%	8	1.481	13	7.85%
	Total	44.974	442	18.861	270
	Average size:	0.102	0.070
Year to date, excluding investment bank exchangeables
					2005 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Merrill Lynch	6.087	23	16.13%	6	1.451	9	8.97%
2	Citigroup	5.836	19	15.47%	7	1.393	6	8.61%
3	Morgan Stanley	5.545	18	14.70%	1	2.213	11	13.68%
4	Goldman Sachs	3.648	12	9.67%	3	1.834	9	11.34%
5	UBS	3.212	14	8.51%	10	0.762	7	4.71%
6	Lehman	3.189	7	8.45%	9	1.049	7	6.49%
7	Banc of America	3.098	19	8.21%	4	1.583	9	9.79%
8	JPMorgan	3.098	14	8.21%	8	1.357	11	8.39%
9	Deutsche Bank	1.058	4	2.80%	2	2.010	9	12.43%
10	Credit Suisse	0.923	7	2.45%	5	1.476	8	9.13%
	Total	37.729	75	16.173	62
	Average size:	0.503	0.261
Year to date, investment bank exchangeables only
	Underwriter	Amount	No.	Share
1	UBS	3.108	41	27.24%
2	Morgan Stanley	2.548	81	22.33%
3	Goldman Sachs	1.210	43	10.61%
4	Citigroup	1.044	33	9.15%
5	Merrill Lynch	1.029	19	9.02%
6	Lehman	0.966	28	8.47%
7	JPMorgan	0.396	74	3.47%
8	Barclays	0.320	107	2.80%
9	Wachovia	0.241	24	2.12%
10	Banc of America	0.214	9	1.88%
	Total	11.408	626
	Average size:	0.018
July, including investment bank exchangeables
					2005 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	0.726	1	25.72%	5	0.223	5	9.29%
2	Morgan Stanley	0.643	8	22.77%	7	0.115	3	4.78%
3	Citigroup	0.492	4	17.43%	9	0.050	2	2.07%
4	Lehman	0.375	3	13.27%	3	0.301	3	12.57%
5	JPMorgan	0.192	1	6.79%	1	0.575	3	24.01%
6	Merrill Lynch	0.135	1	4.78%
7	Banc of America	0.130	1	4.61%	6	0.175	2	7.31%
8	Barclays	0.070	21	2.50%	12	0.024	8	1.00%
9	Wachovia	0.023	3	0.83%	13	0.019	2	0.79%
10	BNP Paribas	0.011	5	0.40%
	Total	2.823	63	2.395	38
	Average size:	0.045	0.063
July, excluding investment bank exchangeables
					2005 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	0.726	1	34.02%	6	0.075	1	3.76%
2	Morgan Stanley	0.476	2	22.29%	8	0.050	1	2.51%
3	Citigroup	0.476	2	22.29%
4	JPMorgan	0.192	1	8.98%	1	0.575	3	28.82%
5	Merrill Lynch	0.135	1	6.33%
6	Banc of America	0.130	1	6.09%	5	0.175	2	8.77%
	Total	2.134	5	1.995	8
	Average size:	0.427	0.249
July, investment bank exchangeables only
	Underwriter	Amount	No.	Share
1	Lehman	0.378	4	35.31%
2	Morgan Stanley	0.229	12	21.39%
3	UBS	0.116	6	10.79%
4	JPMorgan	0.075	18	7.03%
5	Barclays	0.070	21	6.59%
6	Goldman Sachs	0.060	4	5.58%
7	Wachovia	0.044	4	4.09%
8	Citigroup	0.032	3	3.02%
9	Banc of America	0.017	2	1.59%
10	BNP Paribas	0.011	5	1.06%
	Total	1.070	102
	Average size:	0.010
Prospect News Convertibles Underwriter Rankings

Criteria

• The tables include all underwritten dollar-denominated offerings sold in the United States as public or Rule 144A deals reported to Prospect News.

• Offerings are included in the time period in which they price.

• Amounts are based on the total sales price (face amount multiplied by the offering price). The full amount is credited to the bookrunner (or lead manager if no bookrunners). For multiple bookrunners (or lead managers), the total value is divided equally among all the firms.

• Each tranche is counted as a separate deal.

• Bonds are included that convert into the issuer's or another company's stock or the cash equivalent; bonds that convert into other bonds are excluded.

• The investment bank exchangeables only group also includes bonds that convert into an index, a basket of stocks or a basket of indexes.

• Units made up of a bond and stock are included; units made up of a bond and warrants are excluded.

• Preferred issues are included using the same criteria as for bonds.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.