Morgan Stanley top convertibles underwriter year to date

* Convertibles issuance totals $42.46 billion year to date

* Lehman top convertibles underwriter in October

* Convertibles issuance $2.55 billion in October

New York, Oct. 29 - Morgan Stanley extended its run at the top of the convertible league table to eight months, according to data compiled by Prospect News.

But market activity was once again thin, recording the second lowest monthly volume this year at $2.55 billion.

Year-to-date issuance continues at around half the year-ago pace.

Morgan Stanley has brought to market $6.90 billion of convertibles so far this year in 54 deals, achieving a 16.3% share of the total.

The firm continues significantly ahead of Citigroup, the number two firm, at $5.18 billion and Goldman, Sachs & Co. at number three with $4.84 billion.

Morgan Stanley has now topped the year-to-date league tables for eight consecutive months.

Lehman Brothers took the number one position in October with $912 million. That position was largely due to the $750 million exchangeable into General Mills Inc. that the firm issued and underwrote.

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

If investment bank equity-linked deals are excluded, Morgan Stanley remains number one year to date with $6.42 billion while Goldman was first for October with $575 million.

October's total volume of new deals was $2.55 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. September's figure was $2.78 billion (the previously reported $2.50 billion has been increased through greenshoe exercises).

Year to date, the total of new deals is now $42.46 billion, at 50.6% or little more than half the $83.86 billion for the comparable period of 2004.

At the current pace, 2004 is rapidly seeing its chances of matching the $64.4 billion in 2000 and the $60.40 billion in 2002 disappear. The $112.00 billion of 2001 or the $98.17 billion of 2003 look pretty much untouchable.

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

On that basis the year-to-date total is $38.81 billion against $80.17 billion at the same point in 2003.

Year to date 2004. including investment bank exchangeables

2003 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Morgan Stanley	6.903	54	16.26%	4	10.096	55	12.04%
2	Citigroup	5.184	36	12.21%	1	12.738	63	15.19%
3	Goldman Sachs	4.839	61	11.40%	3	10.566	63	12.60%
4	Lehman	4.518	26	10.64%	9	4.312	32	5.14%
5	Banc of America	3.981	20	9.38%	6	6.936	35	8.27%
6	Merrill Lynch	3.457	27	8.14%	5	8.730	55	10.41%
7	Deutsche Bank	2.955	14	6.96%	10	3.854	21	4.60%
8	JPMorgan	2.837	24	6.68%	2	11.470	43	13.68%
9	CSFB	2.349	13	5.53%	8	5.021	27	5.99%
10	UBS	2.281	11	5.37%	7	5.676	38	6.77%
11	Bear Stearns	0.853	12	2.01%	13	0.709	8	0.84%
12	Jefferies	0.590	3	1.39%	-	-	-	-
13	SG	0.375	3	0.88%	22	0.030	1	0.04%
14	Wachovia	0.325	3	0.77%	11	1.449	9	1.73%
15	ABN	0.290	70	0.68%	14	0.534	19	0.64%
	Total	42.461	343	83.860	352
	Average size:	0.124	0.238
October 2004, including investment bank exchangeables
					2003 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Lehman	0.912	4	35.69%	3	0.572	7	15.80%
2	Goldman Sachs	0.607	4	23.74%	8	0.159	2	4.40%
3	Morgan Stanley	0.263	4	10.29%	2	0.576	3	15.92%
4	Citigroup	0.211	3	8.28%	1	0.682	4	18.84%
5	Banc of America	0.130	1	5.09%	4	0.480	2	13.26%
6	JPMorgan	0.120	2	4.70%	5	0.362	3	9.99%
7	UBS	0.113	2	4.40%	14	0.005	5	0.15%
8	Merrill Lynch	0.105	1	4.11%	6	0.251	4	6.93%
9	CIBC	0.037	1	1.47%	-	-	-	-
10	ABN	0.027	9	1.04%	13	0.025	4	0.69%
	Total	2.554	33	3.621	33
	Average size:	0.077	0.110
Year to date 2004, excluding investment bank exchangeables
					2003 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Morgan Stanley	6.419	29	16.54%	4	9.757	45	12.17%
2	Goldman Sachs	4.378	19	11.28%	3	10.089	36	12.58%
3	Citigroup	4.035	22	10.40%	1	12.146	53	15.15%
4	Banc of America	3.981	20	10.26%	6	6.936	35	8.65%
5	Lehman	3.556	15	9.16%	9	3.887	20	4.85%
6	Merrill Lynch	3.162	19	8.15%	5	8.284	40	10.33%
7	Deutsche Bank	2.955	14	7.61%	10	2.634	19	3.29%
8	JPMorgan	2.837	24	7.31%	2	11.470	43	14.31%
9	CSFB	2.349	13	6.05%	8	5.021	27	6.26%
10	UBS	2.281	11	5.88%	7	5.640	24	7.03%
11	Bear Stearns	0.853	12	2.20%	13	0.685	6	0.86%
12	Jefferies	0.590	3	1.52%	-	-	-	-
13	SG	0.375	3	0.97%	22	0.030	1	0.04%
14	Wachovia	0.325	3	0.84%	11	1.449	9	1.81%
15	Barclays	0.144	1	0.37%	-	-	-	-
	Total	38.808	165	80.167	242
	Average size:	0.235	0.331
October 2004, excluding investment bank exchangeables
					2003 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	0.575	2	34.51%	8	0.144	1	4.26%
2	Morgan Stanley	0.230	1	13.81%	2	0.552	2	16.36%
3	Citigroup	0.200	2	12.00%	1	0.682	4	20.23%
4	Banc of America	0.130	1	7.80%	4	0.480	2	14.23%
5	Lehman	0.130	2	7.80%	3	0.496	3	14.69%
6	JPMorgan	0.120	2	7.20%	5	0.362	3	10.72%
7	UBS	0.113	2	6.75%	-	-	-	-
8	Merrill Lynch	0.105	1	6.30%	7	0.150	1	4.45%
9	CIBC	0.037	1	2.25%	-	-	-	-
10	PJ	0.026	1	1.56%	-	-	-	-
	Total	1.666	13	3.372	15
	Average size:	0.128	0.225
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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