By Evan Weinberger
New York, Nov. 30 - Despite well-documented corporate problems, Citigroup widened its lead over second place JPMorgan in year-to-date new issuance in November, according to data compiled by Prospect News.
Citigroup managed to win the month despite only being a part of two new deals. With credit crumbling and market uncertainty returning for the month, new issuance dried up in November 2007 comparison to November 2006. The average size of new deals for the month also shrank in comparison to last year, according to the Prospect News data.
Citigroup has been at least the joint bookrunner on 37 deals so far in 2007, raising $12.653 billion so far this year. That total represents 15.91% of new deals so far this year. Citigroup finished November 2006 in first place as well, but its new issuance for 2007 is far outpacing new issuance for last year. Through the first 11 months of 2006, Citigroup raised $9.962 billion through 27 deals, representing 17.12% of total new issuance for the year.
Total new issuance so far for 2007 is far outpacing the similar 11-month timeframe for 2006, despite the hurt that's been put on the credit markets in recent months.
So far in 2007, investment banks have raised $79.58 billion through 181 new deals. Through November 2006, the investment banks $58.203 billion through 137 new deals. The average size of new deals in 2007 is slightly higher than for 2006, standing at $439 million versus $425 million.
New issuance shrank in November 2007 when compared to November 2006, as market uncertainty and wild fluctuations ruled the day until the last few days of the month. For the month, investment banks raised $5.52 billion in nine new deals. They raised $8.83 billion in 22 deals in November 2006.
But the average size of new deals in November 2007 rose to $613 million from $401 million in November 2006.
For November, Merrill Lynch came top with $1.86 billion in four new deals for a 33.79% share. For November 2006, the firm placed seventh.
Merrill Lynch, which like Citi saw upheaval at the top, placed first for November 2007, raising $1.86 billion in four new deals for a 33.79% share. In November 2006, Merrill Lynch placed seventh, raising $453 million in three deals, or 5.12% of the monthly total.
For the year to date in 2007, Merrill Lynch sits in fourth place, having raised $7.944 billion in 31 deals, representing 10.16% of the total. Last year at this time, Merrill Lynch was in second place, having raised $8.202 billion in 36 deals, or 14.09% of the total.
Goldman Sachs placed second for the month, raising $1.07 billion in one deals, for a 19.38% share of the monthly total. That was a huge jump from last year, when JPMorgan place 11th for the month, raising $286 million in three deals for 3.24% of the total raised in November 2006.
JPMorgan is in second place for the year so far, raising $11.738 billion in 46 new deals, or 14.76% of the total. At this point in 2006, JPMorgan was stuck in eighth place, having raised $4.77 billion in 27 deals for 7.69% of the total. Citigroup extended its lead over JPMorgan to $915 million for the year in November. The lead stood at $858 million at the end of October. With only one month left to go, and a few weeks until the traditional holiday lull, Citigroup looks poised to take the title.
Deutsche Bank maintained its hold on third place, having raised $8.487 billion in 25 deals, or 10.67% so far in 2007. The German bank was mired in 10th place at this point in 2006 at $2.207 billion raised in 12 deals, or 3.79% of the total for the year.
Deutsche Bank's grip on third place grew tenuous, as it was neither the sole nor joint bookrunner of any deals in November.
The Prospect News figures cover dollar-denominated deals offered in the United States as registered transactions or under Rule 144A.
Year to date
2006 Comparables
| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
|
| 1 | Citigroup | 12.653 | 37 | 15.91% | 1 | 9.962 | 27 | 17.12%
|
| 2 | JPMorgan | 11.738 | 46 | 14.76% | 8 | 4.477 | 27 | 7.69%
|
| 3 | Deutsche Bank | 8.487 | 25 | 10.67% | 10 | 2.207 | 12 | 3.79%
|
| 4 | Merrill Lynch | 8.082 | 31 | 10.16% | 2 | 8.202 | 36 | 14.09%
|
| 5 | Morgan Stanley | 7.944 | 15 | 9.99% | 3 | 5.999 | 21 | 10.31%
|
| 6 | Banc of America | 5.931 | 30 | 7.46% | 4 | 5.882 | 32 | 10.11%
|
| 7 | Goldman Sachs | 5.699 | 23 | 7.16% | 5 | 5.674 | 19 | 9.75%
|
| 8 | Lehman | 4.990 | 18 | 6.27% | 6 | 5.119 | 14 | 8.79%
|
| 9 | Credit Suisse | 4.717 | 18 | 5.93% | 9 | 2.470 | 16 | 4.24%
|
| 10 | UBS | 3.027 | 19 | 3.81% | 7 | 4.562 | 22 | 7.84%
|
| Total | 79.548 | 181 | 58.203 | 137 |
|
|
|
| Average size: | 0.439 | 0.425 |
|
|
|
|
|
| November |
|
| | | | | 2006 Comparables |
|
| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
|
| 1 | Merrill Lynch | 1.864 | 4 | 33.79% | 7 | 0.453 | 3 | 5.12%
|
| 2 | Goldman Sachs | 1.069 | 1 | 19.38% | 3 | 1.238 | 3 | 14.01%
|
| 3 | Citigroup | 1.054 | 2 | 19.10% | 2 | 1.399 | 4 | 15.84%
|
| 4 | JPMorgan | 0.846 | 5 | 15.33% | 11 | 0.286 | 3 | 3.24%
|
| 5 | Wachovia | 0.617 | 2 | 11.18% | 9 | 0.305 | 2 | 3.45%
|
| 6 | Lehman | 0.067 | 1 | 1.21% | 4 | 1.206 | 3 | 13.65%
|
| Total | 5.518 | 9 | 8.832 | 22 |
|
|
|
| Average size: | 0.613 | 0.401 |
|
|
|
|
|
|
|
|
|
| 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.
• Structured products issued by an investment bank and exchangeables for or linked to another company's stock are excluded.
• 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.
