• Convertibles issuance totals $31.42 billion year to date
• Citigroup top convertibles underwriter for May
• Convertibles issuance totals $6.27 billion for May
New York, May 31 - Morgan Stanley was the top underwriter of convertibles for the year so far for a second straight month, according to data compiled by Prospect News.
The firm held the position it took from UBS Investment Bank in April and actually widened its lead over the second placed firm - now Citigroup instead of Merrill Lynch & Co. - to just over $1 billion.
Contributing to Morgan Stanley's strong showing was its role as sole bookrunner of Cameron International Corp.'s $500 million of convertible senior notes and as joint bookrunner for SanDisk Corp.'s $1 billion of convertible senior notes.
Citigroup placed first for May, boosted by being joint bookrunner for Nabors Industries Inc.'s $2.5 billion of exchangeable senior notes.
Meanwhile issuance activity fell back to $6.27 billion for May from $7.74 billion in April.
But activity for the year is still running well above 2005 levels.
So far in 2006, $31.42 billion of convertibles have come to market, 2.8 times the $11.27 billion for the comparable period of 2005.
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.
Excluding investment bank exchangeable deals, Merrill Lynch was first and Morgan Stanley second - although only marginally ahead of Citigroup - for the year to date.
Excluding those investment bank synthetics, the year-to-date total is $25.39 billion while May's figure was $5.79 billion. That compares with $7.08 billion in April.
Meanwhile issuance of all investment bank exchangeables - including those linked to an index or a basket of stock or indexes as well as those linked to a single stock - was $1.12 billion for the month and $9.07 billion for 2006 so far. For April the figure was $1.12 billion.
Year to date, including investment bank exchangeables
2005 Comparables
| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
|
| 1 | Morgan Stanley | 5.789 | 51 | 18.43% | 1 | 2.382 | 22 | 21.13%
|
| 2 | Citigroup | 4.743 | 30 | 15.10% | 3 | 1.222 | 17 | 10.84%
|
| 3 | Merrill Lynch | 4.387 | 19 | 13.96% | 2 | 1.397 | 10 | 12.40%
|
| 4 | UBS | 3.559 | 7 | 11.33% | 10 | 0.278 | 4 | 2.47%
|
| 5 | Lehman | 3.458 | 20 | 11.01% | 7 | 0.839 | 9 | 7.44%
|
| 6 | Goldman Sachs | 2.577 | 27 | 8.20% | 4 | 1.142 | 26 | 10.13%
|
| 7 | Banc of America | 2.168 | 14 | 6.90% | 5 | 0.974 | 5 | 8.65%
|
| 8 | JPMorgan | 1.740 | 7 | 5.54% | 8 | 0.782 | 8 | 6.94%
|
| 9 | Deutsche Bank | 1.072 | 12 | 3.41% | 6 | 0.885 | 6 | 7.85%
|
| 10 | Credit Suisse | 0.592 | 28 | 1.88% | 9 | 0.664 | 10 | 5.89%
|
| Total | 31.419 | 294 | 11.270 | 194 |
|
|
|
| Average size: | 0.107 | 0.058 |
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| Year to date, excluding investment bank exchangeables
|
| | | | | 2005 Comparables
|
| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
|
| 1 | Merrill Lynch | 4.334 | 17 | 17.07% | 2 | 1.117 | 7 | 12.05%
|
| 2 | Morgan Stanley | 4.191 | 12 | 16.51% | 1 | 1.904 | 9 | 20.54%
|
| 3 | Citigroup | 4.179 | 11 | 16.46% | 5 | 0.847 | 4 | 9.13%
|
| 4 | Lehman | 2.964 | 6 | 11.68% | 9 | 0.482 | 4 | 5.20%
|
| 5 | Banc of America | 2.168 | 14 | 8.54% | 3 | 0.974 | 5 | 10.51%
|
| 6 | Goldman Sachs | 1.980 | 7 | 7.80% | 6 | 0.841 | 5 | 9.07%
|
| 7 | JPMorgan | 1.740 | 7 | 6.86% | 7 | 0.782 | 8 | 8.44%
|
| 8 | UBS | 1.209 | 5 | 4.76% | 10 | 0.278 | 4 | 3.00%
|
| 9 | Deutsche Bank | 1.058 | 4 | 4.17% | 4 | 0.885 | 6 | 9.54%
|
| 10 | Bear Stearns | 0.587 | 3 | 2.31% | 13 | 0.092 | 1 | 0.99%
|
| Total | 25.388 | 50 | 9.271 | 43 |
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| Average size: | 0.508 | 0.216 |
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| Year to date, investment bank exchangeables only
|
|
|
| Underwriter | Amount | No. | Share |
|
| 1 | UBS | 2.926 | 32 | 32.28% |
|
| 2 | Morgan Stanley | 2.182 | 59 | 24.07% |
|
| 3 | Goldman Sachs | 0.971 | 32 | 10.72% |
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| 4 | Merrill Lynch | 0.823 | 13 | 9.08% |
|
| 5 | Citigroup | 0.788 | 27 | 8.69% |
|
| 6 | Lehman | 0.516 | 18 | 5.69% |
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| 7 | Barclays | 0.211 | 69 | 2.32% |
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| 8 | Banc of America | 0.189 | 6 | 2.08% |
|
| 9 | Wachovia | 0.124 | 15 | 1.37% |
|
| 10 | JPMorgan | 0.123 | 26 | 1.36% |
|
| Total | 9.065 | 399 |
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| Average size: | 0.023 |
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| May, including investment bank exchangeables
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| | | | | 2005 Comparables
|
| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
|
| 1 | Citigroup | 1.509 | 4 | 24.06% | 6 | 0.058 | 2 | 5.16%
|
| 2 | Morgan Stanley | 1.284 | 9 | 20.48% | 5 | 0.109 | 4 | 9.70%
|
| 3 | Lehman | 1.270 | 2 | 20.25% |
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| 4 | Goldman Sachs | 0.895 | 5 | 14.27% | 2 | 0.297 | 2 | 26.57%
|
| 5 | JPMorgan | 0.438 | 2 | 6.98% | 4 | 0.125 | 1 | 11.16%
|
| 6 | Merrill Lynch | 0.302 | 2 | 4.82% | 1 | 0.350 | 1 | 31.25%
|
| 7 | Banc of America | 0.225 | 3 | 3.59% | 3 | 0.125 | 1 | 11.16%
|
| 8 | Jefferies | 0.150 | 1 | 2.39% |
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| 9 | T Weisel | 0.070 | 1 | 1.12% |
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| 10 | Bear Stearns | 0.050 | 1 | 0.80% |
|
| Total | 6.270 | 57 | 1.120 | 30 |
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| Average size: | 0.110 | 0.037 |
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| May, excluding investment bank exchangeables
|
| | | | | 2005 Comparables
|
| Underwriter | Amount | No. | Share | Rank | Amount | No. | Share
|
| 1 | Citigroup | 1.440 | 2 | 24.88% |
|
| 2 | Lehman | 1.250 | 1 | 21.60% |
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| 3 | Morgan Stanley | 1.000 | 2 | 17.28% | 5 | 0.058 | 1 | 6.08%
|
| 4 | Goldman Sachs | 0.850 | 3 | 14.69% | 2 | 0.287 | 1 | 30.42%
|
| 5 | JPMorgan | 0.438 | 2 | 7.56% | 4 | 0.125 | 1 | 13.23%
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| 6 | Merrill Lynch | 0.302 | 2 | 5.23% | 1 | 0.350 | 1 | 37.04%
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| 7 | Banc of America | 0.225 | 3 | 3.89% | 3 | 0.125 | 1 | 13.23%
|
| 8 | Jefferies | 0.150 | 1 | 2.59% |
|
| 9 | T Weisel | 0.070 | 1 | 1.21% |
|
| 10 | Bear Stearns | 0.050 | 1 | 0.86% |
|
| Total | 5.787 | 15 | 0.945 | 4 |
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| Average size: | 0.386 | 0.236 |
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| May, investment bank exchangeables only
|
|
|
| Underwriter | Amount | No. | Share |
|
| 1 | Morgan Stanley | 0.554 | 10 | 49.31% |
|
| 2 | UBS | 0.133 | 7 | 11.79% |
|
| 3 | Citigroup | 0.131 | 4 | 11.69% |
|
| 4 | Banc of America | 0.092 | 1 | 8.19% |
|
| 5 | Merrill Lynch | 0.055 | 2 | 4.89% |
|
| 6 | Barclays | 0.048 | 14 | 4.27% |
|
| 7 | Goldman Sachs | 0.045 | 2 | 4.00% |
|
| 8 | Lehman | 0.020 | 1 | 1.78% |
|
| 9 | JPMorgan | 0.013 | 3 | 1.14% |
|
| 10 | RBC | 0.010 | 1 | 0.89% |
|
| Total | 1.124 | 63 |
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| Average size: | 0.018 |
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| Prospect News Convertibles Underwriter Rankings
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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.
• The investment bank exchangeables only group also includes bonds that convert into an index, a basket of stocks or a basket of indexes.
• 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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