JP Morgan continues climb to top of league table in bumper month

• Convertibles issuance surges to $26.49 billion, more than doubles year over year

• Convertibles issuance (including synthetics) totals $29.76 billion

• Last fortnight of March accounts for 41.5% of year-to-date total

By Kenneth Lim

Boston, March 30 - JPMorgan overtook Deutsche Bank to grab the lead atop the league tables as a late surge of new deals pushed convertible issuance well beyond year-ago levels.

JP Morgan's standing in the league tables has improved every month this year. It helped to raise $5.835 billion in proceeds through 19 deals in the first quarter of the year, accounting for 22.03% of the total so far. The investment bank also led when investment bank exchangeables are counted, with 70 deals that raised $5.874 billion.

Deutsche Bank, which took the lead in February, slipped into second spot with $4.165 billion from seven issues. Deutsche is also the runner-up when synthetics are included, with $4.17 billion from nine deals.

Most of JP Morgan's books came from deals that priced in March. JP Morgan ran the books on nine deals during the month and helped raise $3.362 billion, or 21.78% of the total for the month. Including synthetics, it had 32 deals with $3.39 billion of proceeds in March.

It was the same for most of the other investment banks in the top 10, with the amount of money raised in March accounting for 58.3% of the total in the first three months of the year.

Issuers raised $26.485 billion through 64 offerings in the first three months of the year, more than double the $12.612 billion raised a year ago. Including synthetics, the year-to-date total of $29.756 billion from 524 deals is 70% above the $17.505 billion raised from 173 deals at the same time last year.

The increase was even more pronounced in March, when 35 deals raised $15.435 billion, almost five times the $3.285 billion raised through 13 deals a year ago. With investment bank exchangeables, the total reaches $16.595 billion from 174 deals, almost four times the $4.289 billion from 75 deals in March 2006.

The tail-end of the quarter was the busiest for the banks. The last two weeks of March saw 22 deals raise $10.985 billion in proceeds, or 41.5% of the total for the quarter. All of the month's deals that raised more than $1 billion - Freeport-McMoRan Copper & Gold Inc.'s $2.875 billion offering, Vornado Realty Trust's $1.4 billion issue, ProLogis' $1.1 billion deal and Nortel Networks Corp.'s two-tranche $1.15 billion deal - priced in the last two weeks of the month.

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	JPMorgan	5.835	19	22.03%	5	1.255	4	9.95%
2	Deutsche Bank	4.165	7	15.73%	10	0.345	2	2.73%
3	Merrill Lynch	3.710	13	14.01%	1	2.773	10	21.99%
4	Citigroup	3.068	12	11.58%	3	1.756	6	13.92%
5	Goldman Sachs	1.875	10	7.08%	12	0.097	1	0.77%
6	Credit Suisse	1.863	8	7.03%	9	0.464	2	3.68%
7	UBS	1.325	8	5.00%	6	1.217	5	9.65%
8	Banc of America	1.222	9	4.61%	8	0.487	5	3.86%
9	Morgan Stanley	1.118	5	4.22%	2	1.825	5	14.47%
10	Lehman	0.924	7	3.49%	4	1.714	5	13.59%
	Total	26.485	64	12.612	25
	Average size:	0.414	0.504
Year to date, including investment bank exchangeables
					2006 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	5.874	70	19.74%	6	1.255	4	7.17%
2	Deutsche Bank	4.170	9	14.01%	11	0.353	7	2.02%
3	Merrill Lynch	3.794	16	12.75%	3	2.826	12	16.15%
4	Citigroup	3.673	19	12.34%	4	2.145	18	12.25%
5	Morgan Stanley	2.328	52	7.83%	2	2.913	31	16.64%
6	Goldman Sachs	1.992	14	6.70%	8	0.503	14	2.87%
7	Credit Suisse	1.912	37	6.42%	10	0.476	12	2.72%
8	UBS	1.399	16	4.70%	1	3.567	7	20.38%
9	Lehman	1.387	25	4.66%	5	2.085	16	11.91%
10	Banc of America	1.222	9	4.11%	9	0.487	5	2.78%
	Total	29.756	524	17.505	173
	Average size:	0.057	0.101
March, excluding investment bank exchangeables
					2006 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	3.362	9	21.78%	10	0.090	1	2.74%
2	Merrill Lynch	2.599	8	16.84%	3	0.469	3	14.29%
3	Citigroup	2.532	10	16.40%	7	0.233	2	7.10%
4	Credit Suisse	1.425	4	9.23%
5	Deutsche Bank	1.112	5	7.20%	5	0.345	2	10.49%
6	Goldman Sachs	1.060	5	6.87%	9	0.097	1	2.95%
7	Banc of America	0.953	6	6.18%	4	0.420	4	12.79%
8	UBS	0.803	4	5.20%	1	0.663	3	20.19%
9	Morgan Stanley	0.633	3	4.10%	2	0.575	2	17.49%
10	Wachovia	0.325	2	2.11%	8	0.125	1	3.79%
	Total	15.435	35	3.285	13
	Average size:	0.441	0.253
March, including investment bank exchangeables
					2006 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	3.390	32	20.43%	10	0.090	1	2.10%
2	Citigroup	2.870	13	17.29%	4	0.431	7	10.06%
3	Merrill Lynch	2.599	8	15.66%	3	0.523	5	12.18%
4	Credit Suisse	1.436	10	8.65%	14	0.010	6	0.24%
5	Deutsche Bank	1.117	7	6.73%	7	0.350	5	8.16%
6	Goldman Sachs	1.115	7	6.72%	8	0.148	3	3.45%
7	Morgan Stanley	0.960	23	5.79%	1	0.869	10	20.25%
8	Banc of America	0.953	6	5.74%	5	0.420	4	9.80%
9	UBS	0.852	8	5.13%	2	0.813	4	18.96%
10	Lehman	0.426	12	2.57%	6	0.414	6	9.65%
	Total	16.595	174	4.289	75
	Average size:	0.095	0.057
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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