Deutsche Bank top convertibles underwriter year to date

• Convertibles issuance rebounds to $10.9 billion year to date

• Convertibles issuance (including synthetics) is $12.4 billion year to date

By Kenneth Lim

Boston, Feb. 28 - Deutsche Bank jumped to the top of the convertible league tables for the year to date as issuance volume bounced back in February, although average deal sizes continue to lag year-ago levels.

Deutsche Bank ran the books on only one deal in February, but U.S. Bancorp's $3 billion offering of 30-year convertible senior debentures at the start of the month was enough to clinch the deal's sole bookrunner the top spot as at the end of February.

Deutsche, which was not among the top 10 in January, has helped to raise $3.05 billion of proceeds year to date, with and without investment bank exchangeables. It leads the tables regardless of whether synthetics are counted.

JP Morgan also moved up the rungs and ended the month in the second spot with 10 deals year to date that helped raise about $2.47 billion of proceeds. Lehman Brothers, which led at the end of January, slipped to fifth place with $654 million of proceeds from five deals.

February issuance levels improved year over year and compared to a slow January. February's 17 deals raised $7.66 billion, about 20.8% more than the $6.34 billion raised from five deals in the same month last year. Including synthetics, new convertibles raised $8.34 billion in February, 12% less than a year ago.

The 29 new convertibles issued as of the end of February raised $10.9 billion, up 7.7% from the year-ago amount of $9.33 billion. Including investment bank exchangeables, total issuance currently stands at $12.43 billion, down 5.1% from the same time last year.

Despite the higher totals, year-to-date average deal sizes continue to lag year-ago levels. The average convertible offering so far this year raised $376 million, less than half the $777 million average from a year ago.

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

Year to date, excluding investment bank exchangeables

2006 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Deutsche Bank	3.053	2	28.00%
2	JPMorgan	2.473	10	22.68%	5	1.165	3	12.49%
3	Merrill Lynch	1.111	5	10.19%	1	2.304	7	24.70%
4	Goldman Sachs	0.815	5	7.47%
5	Lehman	0.654	5	6.00%	3	1.464	4	15.70%
6	Citigroup	0.537	2	4.92%	2	1.522	4	16.32%
7	UBS	0.521	4	4.78%	6	0.554	2	5.94%
8	Morgan Stanley	0.485	2	4.44%	4	1.250	3	13.40%
9	Credit Suisse	0.438	4	4.02%	8	0.464	2	4.98%
10	Banc of America	0.268	3	2.46%	9	0.067	1	0.71%
	Total	10.904	29	9.326	12
	Average size:	0.376	0.777
Year to date, including investment bank exchangeables
					2006 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Deutsche Bank	3.053	2	24.56%	14	0.003	2	0.02%
2	JPMorgan	2.483	37	19.97%	6	1.165	3	8.82%
3	Merrill Lynch	1.162	7	9.35%	2	2.304	7	17.43%
4	Lehman	0.941	13	7.57%	5	1.671	10	12.64%
5	Morgan Stanley	0.907	15	7.29%	3	2.045	21	15.47%
6	Goldman Sachs	0.815	5	6.55%	9	0.355	11	2.69%
7	Citigroup	0.803	6	6.46%	4	1.713	11	12.96%
8	UBS	0.547	8	4.40%	1	2.754	3	20.84%
9	Credit Suisse	0.476	27	3.83%	8	0.466	6	3.52%
10	Banc of America	0.268	3	2.16%	11	0.067	1	0.50%
	Total	12.434	316	13.215	98
	Average size:	0.039	0.135
February, excluding investment bank exchangeables
					2006 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Deutsche Bank	3.000	1	39.18%
2	JPMorgan	1.658	4	21.66%	2	1.165	3	18.38%
3	Merrill Lynch	0.833	3	10.88%	1	1.554	4	24.51%
4	Goldman Sachs	0.567	2	7.40%
5	Citigroup	0.383	1	5.01%	4	1.000	2	15.78%
6	Credit Suisse	0.287	3	3.76%
7	UBS	0.253	2	3.30%	6	0.554	2	8.73%
8	Lehman	0.237	2	3.10%	5	1.000	2	15.78%
9	ABN	0.167	1	2.18%
10	Banc of America	0.135	1	1.76%	7	0.067	1	1.05%
	Total	7.656	17	6.339	5
	Average size:	0.450	1.268
February, including investment bank exchangeables
					2006 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Deutsche Bank	3.000	1	35.98%	12	0.003	2	0.03%
2	JPMorgan	1.666	17	19.98%	4	1.165	3	12.29%
3	Merrill Lynch	0.833	3	9.99%	2	1.554	4	16.39%
4	Goldman Sachs	0.567	2	6.80%	7	0.188	5	1.98%
5	Citigroup	0.533	3	6.39%	6	1.102	6	11.62%
6	Lehman	0.459	7	5.50%	5	1.150	6	12.13%
7	Credit Suisse	0.300	11	3.59%	13	0.001	4	0.02%
8	UBS	0.279	6	3.35%	1	2.754	3	29.05%
9	ABN	0.192	12	2.30%
10	Banc of America	0.135	1	1.62%	8	0.067	1	0.70%
	Total	8.338	153	9.479	60
	Average size:	0.054	0.158
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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