Morgan Stanley top convertibles underwriter year to date

* Convertibles issuance totals $39.57 billion year to date

* Goldman top convertibles underwriter in third quarter

* Convertibles issuance $6.95 billion in third quarter

* Deutsche Bank top convertibles underwriter in September

* Convertibles issuance $2.50 billion in September

New York, Sept. 30 - Morgan Stanley remained the number one underwriter of convertible bonds so far this year, stretching its run at the top of the league tables to seven months, according to data compiled by Prospect News.

However market activity was still anemic, recording the second lowest monthly volume this year at $2.50 billion.

Year-to-date issuance is now running at less than half the year-ago pace.

Morgan Stanley has brought to market $6.60 billion of convertibles so far this year in 48 deals, achieving a 16.7% share of the total.

The firm was well ahead of Citigroup in the number two position at $4.97 billion and Goldman, Sachs & Co. at number three with $4.22 billion.

For the third quarter, Goldman was first with $1.40 billion of new deals while Morgan Stanley was second with $820 million.

Deutsche Bank took the number one position in September with $730 million, largely because of its role as bookrunner of Calpine Corp.'s $608 million proceeds sale, the month's largest convertible.

The Prospect News figures cover dollar-denominated deals offered in the United States as registered transactions or under Rule 144A.

The positions are similar if investment bank equity-linked deals are excluded. On that basis, Morgan Stanley is number one year to date with $6.19 billion, Goldman was first for the third quarter with $1.18 billion and Deutsche was top in September with $730 million.

September's total volume of new deals was $2.50 billion (including investment bank equity-linked deals).

That is the lowest so far this year apart from July's $1.04 billion and smaller than any month in 2003.

The third quarter total was $6.95 billion, the smallest quarterly volume since the third quarter of 2002 when only $3.12 billion of convertibles came to market.

Year to date the total of new deals is now $39.57 billion, close to half (49.3%) the $80.24 billion at the same point in 2003.

At the current pace, issuance for 2004 may end up smaller than the $64.4 billion in 2000 and the $60.40 billion in 2002, and has little hope of matching the $112.00 billion of 2001 or the $98.17 billion of 2003.

Issuance looks even weaker if investment bank equity-linked deals are excluded.

On that basis the year-to-date total is $36.86 billion against $76.80 billion at the same stage of last year. The third quarter total was $6.40 billion and September saw $2.28 billion.

Year to date 2004. including investment bank exchangeables

2003 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Morgan Stanley	6.597	48	16.67%	4	9.520	52	11.86%
2	Citigroup	4.973	33	12.57%	1	12.055	59	15.02%
3	Goldman Sachs	4.224	56	10.68%	3	10.406	61	12.97%
4	Banc of America	3.851	19	9.73%	6	6.456	33	8.05%
5	Lehman	3.606	22	9.11%	10	3.740	25	4.66%
6	Merrill Lynch	3.202	24	8.09%	5	8.479	51	10.57%
7	Deutsche Bank	2.930	14	7.41%	9	3.854	21	4.80%
8	JPMorgan	2.647	21	6.69%	2	11.108	40	13.84%
9	CSFB	2.334	13	5.90%	8	4.839	25	6.03%
10	UBS	2.169	9	5.48%	7	5.670	33	7.07%
11	Bear Stearns	0.853	12	2.16%	13	0.644	7	0.80%
12	Jefferies	0.590	3	1.49%	-	-	-	-
13	SG Cowen	0.350	3	0.88%	20	0.030	1	0.04%
14	Wachovia	0.325	3	0.82%	11	1.384	8	1.73%
15	ABN	0.261	60	0.66%	14	0.509	15	0.63%
	Total	39.568	303	80.239	319
	Average size:	0.131	0.252
Third quarter 2004, including investment bank exchangeables
					2003 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	1.403	22	20.18%	2	2.517	15	13.33%
2	Morgan Stanley	0.821	8	11.80%	5	1.755	13	9.29%
3	Deutsche Bank	0.730	2	10.50%	10	0.928	7	4.91%
4	Banc of America	0.679	2	9.77%	7	1.315	10	6.96%
5	Merrill Lynch	0.615	3	8.85%	8	1.180	15	6.25%
6	Citigroup	0.596	5	8.57%	1	2.680	19	14.19%
7	Lehman	0.567	4	8.16%	6	1.613	11	8.54%
8	JPMorgan	0.320	2	4.60%	3	1.986	10	10.52%
9	CSFB	0.300	2	4.31%	9	0.949	7	5.03%
10	UBS	0.264	2	3.79%	4	1.800	16	9.54%
	Total	6.953	82	18.880	113
	Average size:	0.085	0.167
September 2004, including investment bank exchangeables
					2003 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Deutsche Bank	0.730	2	29.14%	-	-	-	-
2	Morgan Stanley	0.538	2	21.48%	7	0.213	2	6.05%
3	Merrill Lynch	0.500	2	19.97%	3	0.508	6	14.42%
4	Goldman Sachs	0.138	9	5.50%	1	0.785	3	22.28%
5	SG Cowen	0.125	1	4.99%	-	-	-	-
6	CSFB	0.125	1	4.99%	-	-	-	-
7	UBS	0.120	1	4.79%	12	0.012	5	0.33%
8	Lehman	0.090	1	3.59%	6	0.285	4	8.08%
9	Lazard	0.050	1	2.00%	-	-	-	-
10	Citigroup	0.045	1	1.82%	4	0.477	4	13.53%
	Total	2.504	34	3.524	32
	Average size:	0.074	0.110
Year to date 2004, excluding investment bank exchangeables
					2003 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Morgan Stanley	6.189	28	16.79%	4	9.205	43	11.99%
2	Banc of America	3.851	19	10.45%	6	6.456	33	8.41%
3	Citigroup	3.835	20	10.41%	1	11.464	49	14.93%
4	Goldman Sachs	3.803	17	10.32%	3	9.945	35	12.95%
5	Lehman	3.426	13	9.30%	9	3.391	17	4.42%
6	Deutsche Bank	2.930	14	7.95%	10	2.634	19	3.43%
7	Merrill Lynch	2.907	16	7.89%	5	8.134	39	10.59%
8	JPMorgan	2.647	21	7.18%	2	11.108	40	14.46%
9	CSFB	2.334	13	6.33%	8	4.839	25	6.30%
10	UBS	2.169	9	5.88%	7	5.640	24	7.34%
11	Bear Stearns	0.853	12	2.32%	13	0.621	5	0.81%
12	Jefferies	0.590	3	1.60%	-	-	-	-
13	SG	0.350	3	0.95%	20	0.030	1	0.04%
14	Wachovia	0.325	3	0.88%	11	1.384	8	1.80%
15	Barclays	0.144	1	0.39%	-	-	-	-
	Total	36.858	150	76.795	227
	Average size:	0.246	0.338
Third quarter 2004. excluding investment bank exchangeables
					2003 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	1.182	4	18.47%	2	2.398	10	13.15%
2	Deutsche Bank	0.730	2	11.40%	10	0.928	7	5.09%
3	Morgan Stanley	0.696	3	10.88%	5	1.657	10	9.08%
4	Banc of America	0.679	2	10.61%	7	1.315	10	7.21%
5	Merrill Lynch	0.615	3	9.61%	8	1.034	9	5.67%
6	Lehman	0.555	3	8.67%	6	1.550	9	8.50%
7	Citigroup	0.507	2	7.92%	1	2.571	16	14.09%
8	JPMorgan	0.320	2	5.00%	3	1.986	10	10.89%
9	CSFB	0.300	2	4.69%	9	0.949	7	5.20%
10	UBS	0.264	2	4.12%	4	1.770	7	9.70%
	Total	6.400	25	18.244	75
	Average size:	0.256	0.243
September 2004, excluding investment bank exchangeables
					2003 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Deutsche Bank	0.730	2	32.04%	-	-	-	-
2	Morgan Stanley	0.538	2	23.62%	8	0.180	1	5.55%
3	Merrill Lynch	0.500	2	21.95%	3	0.425	3	13.09%
4	SG	0.125	1	5.49%	-	-	-	-
5	CSFB	0.125	1	5.49%	-	-	-	-
6	UBS	0.120	1	5.27%	-	-	-	-
7	Lehman	0.090	1	3.95%	6	0.222	2	6.84%
8	Lazard	0.050	1	2.20%	-	-	-	-
	Total	2.278	10	3.246	15
	Average size:	0.228	0.216
Prospect News Convertibles Underwriter Rankings

Criteria

* The tables include all 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.

* 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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