Morgan Stanley top convertibles underwriter year to date after REIT-dominated month

• Convertibles issuance totals $48.49 billion year to date

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

• Convertibles issuance (no synthetics) totals $40.39 billion year to date

Boston, Aug. 31 - Morgan Stanley kept its place atop the convertible league tables for the fifth straight month amid a real estate investment thrust into the primary market. Excluding investment bank exchangeable offerings, Merrill Lynch remained the most prolific bookrunner, according to data compiled by Prospect News.

The summer slump took its toll on issuance numbers in August, with the $2.94 billion total raised representing 93% of the amount raised in July. That amount was just 60% of year-ago figures. Excluding synthetics, proceeds from the eight deals in August were 85% of July amounts, and 47% of proceeds from a year ago.

Real estate investment trusts came out in force, representing five of the eight new deals. They raised $1.65 billion, or four-fifths of the total amount in August.

The year-to-date total is now $48.49 billion, more than double the $23.752 billion amount in the year-ago period. Excluding synthetics, the year-to-date amount is $40.39 billion, from $20.65 billion a year ago.

The total issuance of investment bank exchangeables was $1.66 billion in August, bringing the year-to-date amount to $13.24 billion.

Merrill Lynch extended its lead over nearest peer Citigroup for year-to-date non-synthetic deal amounts. Its deals raised $0.84 billion more than Citigroup's as of end-August, up from $0.27 billion a month earlier. Merrill Lynch also had the highest total in August if investment bank exchangeables are counted, with deals worth $0.73 billion.

Year-to-date, Morgan Stanley remains the top bookrunner when investment bank exchangeables are counted. Its deals raised $0.23 billion in August, bringing Morgan Stanley's year-to-date total to $7.71 billion.

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 for the all exchangeables figure which includes index-linked offerings.

Year to date, including investment bank exchangeables

2005 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Morgan Stanley	7.706	79	15.89%	2	3.054	32	12.86%
2	Citigroup	6.977	45	14.39%	4	2.819	30	11.87%
3	Merrill Lynch	6.885	28	14.20%	6	1.933	14	8.14%
4	UBS	5.884	17	12.14%	10	0.837	8	3.52%
5	Lehman	4.497	33	9.27%	1	4.098	21	17.25%
6	Goldman Sachs	4.286	32	8.84%	3	2.878	39	12.12%
7	JPMorgan	3.574	27	7.37%	8	1.525	13	6.42%
8	Banc of America	3.323	21	6.85%	7	1.658	10	6.98%
9	Deutsche Bank	1.326	15	2.73%	5	2.010	9	8.46%
10	Wachovia	1.082	20	2.23%	12	0.233	7	0.98%
	Total	48.488	523	23.752	311
	Average size:	0.093	0.076
Year to date, excluding investment bank exchangeables
					2005 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Merrill Lynch	6.830	25	16.91%	7	1.653	11	8.00%
2	Citigroup	5.988	21	14.83%	4	2.267	11	10.98%
3	Morgan Stanley	5.595	18	13.85%	2	2.323	12	11.25%
4	Goldman Sachs	3.689	12	9.13%	3	2.304	12	11.16%
5	JPMorgan	3.563	17	8.82%	8	1.525	13	7.39%
6	UBS	3.534	15	8.75%	10	0.837	8	4.05%
7	Lehman	3.329	8	8.24%	1	3.549	8	17.19%
8	Banc of America	3.323	21	8.23%	6	1.658	10	8.03%
9	Deutsche Bank	1.308	5	3.24%	5	2.010	9	9.73%
10	Credit Suisse	0.963	7	2.38%	9	1.476	8	7.15%
	Total	40.387	84	20.646	72
	Average size:	0.481	0.287
Year to date, investment bank exchangeables only
	Underwriter	Amount	No.	Share
1	UBS	3.206	47	24.21%
2	Morgan Stanley	3.066	95	23.16%
3	Goldman Sachs	1.352	45	10.21%
4	Merrill Lynch	1.315	25	9.93%
5	Citigroup	1.265	35	9.55%
6	Lehman	1.212	33	9.15%
7	JPMorgan	0.490	103	3.70%
8	Barclays	0.394	125	2.97%
9	Wachovia	0.300	28	2.27%
10	Banc of America	0.240	12	1.82%
	Total	13.242	746
	Average size:	0.018
August, including investment bank exchangeables
					2005 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Merrill Lynch	0.730	3	24.88%	4	0.202	2	4.13%
2	JPMorgan	0.444	8	15.13%	6	0.168	2	3.42%
3	Lehman	0.370	5	12.60%	1	2.605	5	53.26%
4	Citigroup	0.357	3	12.16%	2	0.909	7	18.59%
5	Wachovia	0.280	4	9.53%	11	0.011	1	0.21%
6	Deutsche Bank	0.230	1	7.84%
7	Morgan Stanley	0.226	8	7.68%	5	0.200	4	4.08%
8	Banc of America	0.190	2	6.47%	7	0.075	1	1.53%
9	Barclays	0.069	17	2.34%	9	0.048	10	0.98%
10	HSBC	0.018	8	0.62%
	Total	2.935	73	4.891	41
	Average size:	0.040	0.119
August, excluding investment bank exchangeables
					2005 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Merrill Lynch	0.728	2	34.77%	4	0.202	2	4.52%
2	JPMorgan	0.440	3	21.01%	5	0.168	2	3.74%
3	Deutsche Bank	0.230	1	10.98%
4	Wachovia	0.230	1	10.98%
5	Banc of America	0.190	2	9.07%	7	0.075	1	1.68%
6	Citigroup	0.151	2	7.22%	2	0.874	5	19.53%
7	Lehman	0.125	1	5.97%	1	2.500	1	55.89%
	Total	2.094	8	4.473	10
	Average size:	0.262	0.447
August, investment bank exchangeables only
	Underwriter	Amount	No.	Share
1	Morgan Stanley	0.508	13	28.37%
2	Merrill Lynch	0.287	6	15.99%
3	Lehman	0.245	4	13.65%
4	Citigroup	0.221	2	12.31%
5	Goldman Sachs	0.142	2	7.93%
6	UBS	0.098	6	5.47%
7	JPMorgan	0.088	25	4.90%
8	Barclays	0.074	18	4.11%
9	Wachovia	0.059	4	3.27%
10	Banc of America	0.026	3	1.45%
	Total	1.792	111
	Average size:	0.016
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.

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