Lehman top convertibles underwriter year to date

* Convertibles issuance totals $26.76 billion year to date

* Lehman top convertibles underwriter in Q3

* Convertibles issuance totals $10.29 billion in Q3

* Citigroup top convertibles underwriter in September

* Convertibles issuance totals $3.11 billion in September

New York, Sept. 30 - Lehman Brothers held on to its place as number one underwriter of convertibles, according to data compiled by Prospect News.

On the back of U.S. Bancorp's $2.5 billion offering of convertible debentures, for which Lehman was sole bookrunner, the firm jumped to number one for the year through August, pushing Morgan Stanley off the top spot which it had held every month this year and also for 2004 as a whole.

But Citigroup was the number one underwriter for September, almost entirely due to the $989 million SynDECs offering issued by Citigroup Funding Inc. and exchangeable for Genworth Financial Inc. that it brought to market on Sept. 21.

Total volume for September was $3.11 million, a little ahead of the $2.92 billion in September 2004, but down from $4.73 billion in August, a figure pushed up by the U.S. Bancorp offering.

The third quarter as a whole came in at $10.29 billion, actually ahead of the $7.38 billion for the same period last year.

But this year is still lagging well behind 2004's activity level. For 2005 to date, issuance is $26.76 billion, only 66% of the $40.32 billion at the same stage of last year.

However, once again due to continuing heavy issuance of investment bank exchangeables, the total number of deals at 350 is ahead of the 324 for the first nine months of 2004.

Excluding the exchangeables, issuance so far this year comes to $22.26 billion, 60% of the $37.15 billion at the same stage of 2004. On this basis, the number of deals is 83 against 152 a year earlier.

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

Year-to-date 2005, including investment bank exchangeables

2004 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Lehman	4.463	27	16.68%	5	3.806	25	9.44%
2	Citigroup	3.891	33	14.54%	2	5.049	34	12.52%
3	Morgan Stanley	3.258	37	12.18%	1	6.723	53	16.67%
4	Goldman Sachs	3.101	44	11.59%	3	4.287	63	10.63%
5	Merrill Lynch	2.340	17	8.75%	6	3.352	26	8.31%
6	Deutsche Bank	2.011	10	7.51%	7	2.955	14	7.33%
7	Banc of America	1.998	14	7.47%	4	3.851	19	9.55%
8	JPMorgan	1.570	14	5.87%	8	2.717	22	6.74%
9	CSFB	1.508	14	5.64%	9	2.349	13	5.82%
10	UBS	0.973	10	3.64%	10	2.169	9	5.38%
	Total	26.756	350	40.322	324
	Average size:	0.076	0.124
Year-to-date 2005, excluding investment bank exchangeables
					2004 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Lehman	3.858	12	17.34%	5	3.433	13	9.24%
2	Morgan Stanley	2.478	15	11.13%	1	6.189	28	16.66%
3	Goldman Sachs	2.369	12	10.65%	4	3.803	17	10.24%
4	Citigroup	2.267	11	10.18%	3	3.835	20	10.32%
5	Merrill Lynch	2.060	14	9.26%	6	3.057	18	8.23%
6	Deutsche Bank	2.010	9	9.03%	7	2.955	14	7.95%
7	Banc of America	1.998	14	8.98%	2	3.851	19	10.37%
8	JPMorgan	1.570	14	7.05%	8	2.717	22	7.31%
9	CSFB	1.503	9	6.75%	9	2.349	13	6.32%
10	UBS	0.962	10	4.32%	10	2.169	9	5.84%
	Total	22.256	83	37.149	152
	Average size:	0.268	0.244
Q3	2005, including investment bank exchangeables
					2004 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Lehman	3.270	14	31.78%	7	0.633	5	8.59%
2	Citigroup	2.031	12	19.73%	6	0.671	6	9.10%
3	Goldman Sachs	1.020	14	9.91%	1	1.418	24	19.23%
4	JPMorgan	0.787	6	7.65%	8	0.390	3	0.0529
5	Merrill Lynch	0.610	5	5.92%	4	0.700	4	9.49%
6	Banc of America	0.590	7	5.73%	5	0.679	2	9.21%
7	CSFB	0.585	3	5.68%	9	0.315	2	4.27%
8	Morgan Stanley	0.519	12	5.04%	2	0.864	10	11.71%
9	UBS	0.261	4	2.54%	10	0.264	2	0.0358
10	Bear Stearns	0.250	2	2.43%	17	0.028	1	0.37%
	Total	10.291	118	7.375	91
	Average size:	0.087	0.081
Q3	2005, excluding investment bank exchangeables
					2004 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Lehman	3.042	6	37.66%	6	0.562	3	8.48%
2	Citigroup	0.874	5	10.81%	7	0.507	2	7.65%
3	JPMorgan	0.787	6	9.75%	8	0.390	3	5.89%
4	Goldman Sachs	0.610	4	7.55%	1	1.182	4	0.1784
5	Merrill Lynch	0.610	5	7.55%	3	0.700	4	10.56%
6	Banc of America	0.590	7	7.30%	5	0.679	2	10.25%
7	CSFB	0.585	3	7.24%	9	0.315	2	4.75%
8	Morgan Stanley	0.315	5	3.90%	4	0.696	3	10.51%
9	Bear Stearns	0.250	2	3.09%	16	0.028	1	0.42%
10	UBS	0.250	4	3.09%	10	0.264	2	3.98%
	Total	8.078	29	6.626	26
	Average size:	0.279	0.255
September 2005, including investment bank exchangeables
					2004 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Citigroup	1.072	3	34.53%	8	0.121	2	4.15%
2	Merrill Lynch	0.407	3	13.12%	2	0.585	3	20.03%
3	Lehman	0.398	6	12.82%	4	0.156	2	5.34%
4	Banc of America	0.340	4	10.95%	-	-	-	-
5	Goldman Sachs	0.223	5	7.17%	6	0.146	10	5.00%
6	Morgan Stanley	0.204	5	6.59%	3	0.581	4	19.89%
7	UBS	0.136	2	4.39%	9	0.120	1	4.11%
8	CSFB	0.060	1	1.93%	7	0.140	1	4.79%
8	Wachovia	0.060	1	1.93%	-	-	-	-
10	Bear Stearns	0.050	1	1.61%	-	-	-	-
	Total	3.104	39	2.921	42
	Average size:	0.080	0.070
September 2005, excluding investment bank exchangeables
					2004 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Merrill Lynch	0.407	3	23.69%	2	0.585	3	23.36%
2	Lehman	0.343	4	19.91%	7	0.097	1	3.86%
3	Banc of America	0.340	4	19.77%	-	-	-	-
4	Morgan Stanley	0.155	3	9.01%	3	0.538	2	21.49%
5	UBS	0.125	2	7.27%	6	0.120	1	4.79%
6	Goldman Sachs	0.075	1	4.36%	-	-	-	-
7	CSFB	0.060	1	3.49%	5	0.140	1	5.59%
8	Wachovia	0.060	1	3.49%	-	-	-	-
9	Bear Stearns	0.050	1	2.91%	-	-	-	-
10	JPMorgan	0.045	1	2.62%	8	0.070	1	2.80%
	Total	1.720	12	2.504	11
	Average size:	0.143	0.228
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.

* 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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