J.P. Morgan top U.S. market convertibles underwriter year to date

• U.S. market convertibles issuance totals $29.35 billion year to date

• October convertibles issuance totals $3.19 billion in 12 deals

By Rebecca Melvin

New York, Oct. 30 - J.P. Morgan remained top U.S. market convertible underwriter for the year to date through October, with Bank of America and Morgan Stanley taking slots two and three, respectively; while Goldman Sachs took fourth position, according to data compiled by Prospect News.

For the year to date, J.P. Morgan accounted for $6.88 billion of new issuance in 45 deals, which was 23% of the total volume of $29.35 billion.

So far this year, volume total stands at about half of what it was last year at this time when total primary issuance was $61.83 billion.

Bank of America continues to hold on to the number two U.S. market convertible underwriter slot with $3.59 billion, or 12.2% of the total. Morgan Stanley unseated Citigroup for third place, with $3.52 billion in new issuance in 23 deals, totaling 12.0% of total volume, according to Prospect News' data.

Among early October's new issues were Avis Budget Group Inc.'s upsized $300 million of 3.5% convertibles due 2014; Conseco Inc.'s $293 million of 7% convertibles due 2016; Finisar Corp.'s upsized $90 million of 5% convertible due 2029; and Sterlite Industries (India) Ltd.'s $500 million of 4% convertibles due 2014.

Toward the end of the month, there were Dole Food Co. Inc.'s $300 million of 7% mandatory convertibles that came together with an initial public offering, as well as Jefferies Group Inc.'s $300 million of 3.875% convertibles due 2029 and Navistar International Corp.'s upsized $550 million of 3% convertibles due 2014.

Following the five deals that priced the week of Oct. 19, there was no issuance this past week.

"For the calendar, pretty much everyone was shooting for last week; and there were no issues this week. People are digesting those new issues," a New York-based sellside analyst said.

Of those five deals last week, three priced on the rich end of talk, including Navistar, GXM Resources Inc.'s $75 million of 4.5% convertibles due 2015 and Forest City Enterprises Inc's $175 million of 5% convertibles due 2016.

"Those three priced at the rich end and showed strong demand, so I would say they are the deals that did best," the sellsider said.

Year to date

2008 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	6.883	45	23.46%	4	8.253	31	13.35%
2	Bank of America	3.588	32	12.22%	1	11.476	24	18.56%
3	Morgan Stanley	3.523	23	12.01%	8	2.671	18	4.32%
4	Goldman Sachs	3.498	21	11.92%	5	7.430	22	12.02%
5	Citigroup	3.395	24	11.57%	2	9.256	22	14.97%
6	Credit Suisse	2.652	17	9.04%	10	2.421	17	3.92%
7	Deutsche Bank	1.941	13	6.61%	11	2.331	11	3.77%
8	Barclays	1.344	10	4.58%	12	0.276	1	0.45%
9	Wachovia	0.605	5	2.06%	9	2.561	6	4.14%
10	Jefferies	0.547	4	1.87%	16	0.125	1	0.20%
	Total	29.345	97	61.825	106
	Average size:	0.303	0.583
October
					2008 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Morgan Stanley	0.758	4	23.78%
2	Deutsche Bank	0.561	4	17.59%
3	Jefferies	0.383	2	12.00%
4	Goldman Sachs	0.342	3	10.72%
5	JPMorgan	0.261	3	8.18%
5	Bank of America	0.261	3	8.18%
7	Barclays	0.169	2	5.30%
8	Citigroup	0.161	2	5.04%
9	Credit Suisse	0.129	2	4.05%
10	Piper Jaffray	0.100	1	3.14%
	Total	3.188	12	0	0
	Average size:	0.266
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.

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