Morgan Stanley top convertibles underwriter year to date

* Convertibles issuance totals $16.27 billion year to date

* Deutsche Bank top convertibles underwriter in Q2

* Convertibles issuance totals $8.15 billion in Q2

* Deutsche Bank top convertibles underwriter in June

* Convertibles issuance totals $5.00 billion in June

New York, June 30 - Morgan Stanley continued its run as the number one underwriter of convertibles for the year so far, according to data compiled by Prospect News.

Meanwhile new deal activity recovered to its highest level in more than a year.

Morgan Stanley has now brought to market $2.74 billion of convertibles, still comfortably ahead of number-two ranked Goldman Sachs & Co. at $2.07 billion.

Deutsche Bank was top in the second quarter and for the month of June, in large part because it was sole bookrunner for Cephalon Inc.'s $800 million sale on June 2.

In total June saw $5.00 billion of new deals come to market, the best figure since $5.61 billion in May 2004 and a dramatic improvement from the $1.12 billion of May 2005.

Year-to-date issuance now totals $16.27 billion, 49% of the year-ago pace. While activity remains way below 2004's level, 2005 has caught up a little with June's strong performance. At the end of May, this year was achieving just 39% of the 2004 figure.

Even while dollar volume is depressed, the total number of deals has kept pace with 2004 thanks to strong activity in the investment bank exchangeable sector. So far this year there have been 231 deals in total compared to 233 for the first half of last year.

Excluding the exchangeables, issuance so far this year comes to $13.98 billion, 46% of the $30.52 billion at the same stage of 2004. On this basis, the number of deals is 53 against 126 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	Morgan Stanley	2.740	25	16.84%	1	5.860	43	17.79%
2	Goldman Sachs	2.070	29	12.73%	5	2.869	39	8.71%
3	Deutsche Bank	1.890	9	11.62%	8	2.200	12	6.68%
4	Citigroup	1.861	21	11.44%	2	4.377	28	13.29%
5	Merrill Lynch	1.721	12	10.58%	6	2.652	22	8.05%
6	Banc of America	1.408	7	8.66%	4	3.172	17	9.63%
7	Lehman	1.183	13	7.27%	3	3.172	20	9.63%
8	CSFB	0.923	11	5.67%	9	2.034	11	6.17%
9	JPMorgan	0.782	8	4.81%	7	2.327	19	7.06%
10	UBS	0.712	6	4.38%	10	1.905	7	5.78%
	Total	16.266	231	32.946	233
	Average size:	0.070	0.141
Year-to-date 2005, excluding investment bank exchangeables
					2004 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Morgan Stanley	2.163	10	15.47%	1	5.493	25	18.00%
2	Deutsche Bank	1.890	9	13.52%	8	2.200	12	7.21%
3	Goldman Sachs	1.749	7	12.51%	5	2.620	13	8.58%
4	Merrill Lynch	1.441	9	10.31%	6	2.357	14	7.72%
5	Banc of America	1.408	7	10.07%	3	3.172	17	10.39%
6	Citigroup	1.393	6	9.97%	2	3.329	18	10.91%
7	CSFB	0.918	6	6.56%	9	2.034	11	6.66%
8	Lehman	0.806	6	5.77%	4	2.871	10	9.41%
9	JPMorgan	0.782	8	5.60%	7	2.327	19	7.62%
10	UBS	0.712	6	5.09%	10	1.905	7	6.24%
	Total	13.978	53	30.522	126
	Average size:	0.264	0.242
Q2	2005, including investment bank exchangeables
					2004 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Deutsche Bank	1.380	4	16.93%	9	0.417	3	3.24%
2	Goldman Sachs	1.255	9	15.40%	5	1.135	16	8.82%
3	Banc of America	1.026	5	12.58%	2	1.908	9	14.83%
4	Merrill Lynch	0.949	5	11.64%	8	0.686	10	5.33%
5	Morgan Stanley	0.844	12	10.36%	1	2.342	17	18.20%
6	Citigroup	0.782	8	9.60%	3	1.877	14	14.59%
7	Lehman	0.548	6	6.73%	7	0.701	7	5.45%
8	UBS	0.434	2	5.32%	10	0.380	3	2.95%
9	CSFB	0.353	4	4.33%	6	1.065	6	8.27%
10	JPMorgan	0.125	1	1.53%	4	1.247	13	9.69%
	Total	8.151	101	12.871	109
	Average size:	0.081	0.118
Q2	2005, excluding investment bank exchangeables
					2004 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Deutsche Bank	1.380	4	19.79%	9	0.417	3	3.41%
2	Goldman Sachs	1.196	3	17.15%	6	1.012	5	8.27%
3	Banc of America	1.026	5	14.71%	2	1.908	9	15.60%
4	Merrill Lynch	0.674	3	9.66%	8	0.594	5	4.86%
5	Citigroup	0.546	2	7.83%	3	1.694	8	13.85%
6	Lehman	0.528	4	7.57%	7	0.658	5	5.38%
7	UBS	0.434	2	6.22%	10	0.380	3	3.11%
8	Morgan Stanley	0.408	3	5.85%	1	2.212	10	18.08%
9	CSFB	0.351	2	5.03%	5	1.065	6	8.70%
10	JPMorgan	0.125	1	1.79%	4	1.247	13	10.19%
	Total	6.975	17	12.232	57
	Average size:	0.410	0.215
June 2005, including investment bank exchangeables
					2004 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Deutsche Bank	1.005	3	20.12%	6	0.267	2	5.96%
2	Goldman Sachs	0.929	3	18.59%	7	0.246	4	5.49%
3	Citigroup	0.638	4	12.78%	1	1.200	5	26.82%
4	Banc of America	0.434	2	8.68%	4	0.526	5	11.76%
5	UBS	0.434	2	8.68%
6	Morgan Stanley	0.358	3	7.16%	2	0.608	5	13.58%
7	Lehman	0.344	4	6.88%	9	0.189	2	4.22%
8	Merrill Lynch	0.324	2	6.48%	5	0.270	3	6.03%
9	CSFB	0.259	1	5.18%	8	0.193	1	4.30%
10	RBC	0.125	1	2.50%
	Total	4.996	37	4.474	34
	Average size:	0.135	0.132
June 2005, excluding investment bank exchangeables
					2004 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Deutsche Bank	1.005	3	21.35%	5	0.267	2	6.29%
2	Goldman Sachs	0.909	2	19.30%	7	0.217	2	5.11%
3	Citigroup	0.546	2	11.60%	1	1.110	3	26.18%
4	UBS	0.434	2	9.21%
5	Banc of America	0.434	2	9.21%	4	0.526	5	12.40%
6	Merrill Lynch	0.324	2	6.88%	6	0.229	2	5.39%
7	Lehman	0.324	2	6.88%	9	0.189	2	4.45%
8	CSFB	0.259	1	5.50%	8	0.193	1	4.54%
9	Morgan Stanley	0.259	1	5.50%	2	0.559	3	13.19%
10	RBC	0.125	1	2.66%
	Total	4.707	10	4.241	22
	Average size:	0.471	0.193
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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