Morgan Stanley top convertibles underwriter year to date

* Convertibles issuance totals $11.21 billion year to date

* Merrill Lynch top convertibles underwriter in May

* Convertibles issuance totals $1.06 billion in May

New York, May 31 - Morgan Stanley remained the number one underwriter of convertibles for the year so far but new deal activity plummeted to just over $1 billion, according to data compiled by Prospect News.

May's $1.06 billion of issuance is marginally more than half the $2.04 billion seen in April and the lowest figure since $1.05 billion in July 2004.

Year-to-date issuance now totals $11.21 billion, just 39% of the figure at the same point last year.

However the total number of deals has nearly kept pace with 2004 thanks to strong activity in the investment bank exchangeable sector. So far this year there have been 189 deals compared to 199 for the first five months of last year.

Excluding the exchangeables, issuance so far this year comes to $9.26 billion, 35% of the $26.28 billion at the same stage of 2004. On this basis, the number of deals is 43 against 104 a year earlier.

Despite the low volume, there were several changes in the rankings of the various banks from a month earlier.

Morgan Stanley is still in first place, having been number one year to date for every month this year and for all of 2004.

Merrill Lynch moved up to second place, pushing Citigroup into third position. Goldman Sachs jumped two places to fourth, Banc of America held steady at fifth and Deutsche Bank fell two places to sixth.

Merrill was top for May thanks to its role as bookrunner for IVAX Corp.'s $350 million sale of convertible senior notes.

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	Morgan Stanley	2.344	20	20.92%	1	5.252	38	18.45%
2	Merrill Lynch	1.397	10	12.46%	6	2.383	19	8.37%
3	Citigroup	1.202	16	10.73%	2	3.177	23	11.16%
4	Goldman Sachs	1.142	26	10.19%	5	2.623	35	9.21%
5	Banc of America	0.974	5	8.69%	4	2.646	12	9.29%
6	Deutsche Bank	0.885	6	7.89%	7	1.934	10	6.79%
7	Lehman	0.839	9	7.48%	3	2.983	18	10.48%
8	JPMorgan	0.782	8	6.98%	10	1.769	14	6.21%
9	CSFB	0.664	10	5.93%	9	1.841	10	6.47%
10	UBS	0.278	4	2.48%	8	1.905	7	6.69%
	Total	11.208	189	28.473	199
	Average size:	0.059	0.143
Year-to-date 2005, excluding investment bank exchangeables
					2004 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Morgan Stanley	1.896	9	20.47%	1	4.934	22	18.77%
2	Merrill Lynch	1.117	7	12.06%	6	2.128	12	8.10%
3	Banc of America	0.974	5	10.52%	3	2.646	12	10.07%
4	Deutsche Bank	0.885	6	9.55%	7	1.934	10	7.36%
5	Citigroup	0.847	4	9.14%	5	2.219	15	8.44%
6	Goldman Sachs	0.841	5	9.07%	4	2.404	11	9.15%
7	JPMorgan	0.782	8	8.45%	10	1.769	14	6.73%
8	CSFB	0.659	5	7.11%	9	1.841	10	7.01%
9	Lehman	0.482	4	5.21%	2	2.682	8	10.21%
10	UBS	0.278	4	3.00%	8	1.905	7	7.25%
	Total	9.263	43	26.282	104
	Average size:	0.215	0.253
May 2005, including investment bank exchangeables
					2004 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Merrill Lynch	0.350	1	33.09%	6	0.392	6	6.99%
2	Goldman Sachs	0.297	2	28.13%	3	0.667	4	11.90%
3	Banc of America	0.125	1	11.82%	2	1.208	2	21.53%
4	JPMorgan	0.125	1	11.82%	8	0.317	4	5.65%
5	Morgan Stanley	0.071	2	6.73%	1	1.511	7	26.95%
6	Citigroup	0.038	1	3.59%	7	0.379	4	6.76%
7	Barclays	0.023	8	2.15%
8	ABN	0.020	9	1.86%	13	0.014	7	0.25%
9	Wachovia	0.009	1	0.80%
	Total	1.058	25	5.608	36
	Average size:	0.042	0.156
May 2005, excluding investment bank exchangeables
					2004 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Merrill Lynch	0.350	1	37.33%	6	0.366	3	6.71%
2	Goldman Sachs	0.287	1	30.67%	3	0.645	2	11.84%
3	Banc of America	0.125	1	13.33%	2	1.208	2	22.17%
4	JPMorgan	0.125	1	13.33%	8	0.317	4	5.82%
5	Morgan Stanley	0.050	1	5.33%	1	1.480	5	27.17%
	Total	0.938	4	5.446	20
	Average size:	0.234	0.272
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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