Morgan Stanley top convertibles underwriter year to date

• Convertibles issuance totals $42.12 billion year to date

• Merrill Lynch top convertibles (no synthetics) underwriter year to date

• Convertibles issuance (no synthetics) totals $35.60 billion year to date

New York, June 30 - Morgan Stanley continued as the top underwriter of convertibles for the year so far for a third straight month while issuance soared to its highest level in almost three years, according to data compiled by Prospect News.

The firm held the position it took from UBS Investment Bank in April although its lead over second placed Citigroup narrowed to $0.65 billion from just over $1 billion at the end of May.

Meanwhile Merrill Lynch & Co. was the top underwriter of convertibles, excluding investment bank exchangeable offerings.

For the second quarter, Citigroup placed first (both with and without the exchangeables) while Citigroup was first in June, including the investment bank exchangeables while UBS was first excluding those deals.

Total volume for June was $9.92 billion ($9.45 billion without the investment bank equity-linkeds), the best since the $11.27 billion of July 2003 ($11.04 billion without the investment bank deals).

Year-to-date issuance is now $42.12 billion, more than 2.5 times the $16.47 billion total at the same point last year and the best first-half performance since the $61.36 billion in 2003.

Excluding the investment bank deals, the figures are $35.60 billion this year against $14.18 billion in the first half of 2005 and $58.55 billion in the same period of 2003.

Among June's big deals were Symantec Corp.'s $2.1 billion in two parts, Equity Office Properties' $1.5 billion offering and MedImmune Inc.'s $1.15 billion in two tranches.

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 - except where noted.

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 $1.00 billion for the month, bringing the year-to-date total to $10.10 billion. June's activity was down slightly from May's $1.12 billion.

Year to date, including investment bank exchangeables

2005 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Morgan Stanley	6.777	62	16.09%	1	2.740	25	16.64%
2	Citigroup	6.129	38	14.55%	4	1.861	21	11.30%
3	Merrill Lynch	6.005	24	14.26%	5	1.731	12	10.51%
4	UBS	5.562	16	13.20%	10	0.712	6	4.32%
5	Lehman	3.738	25	8.87%	7	1.192	13	7.24%
6	Goldman Sachs	3.519	31	8.35%	2	2.080	30	12.64%
7	Banc of America	2.968	18	7.05%	6	1.408	7	8.55%
8	JPMorgan	2.910	14	6.91%	9	0.782	8	4.75%
9	Deutsche Bank	1.075	13	2.55%	3	2.010	9	12.21%
10	Credit Suisse	0.952	37	2.26%	8	0.923	11	5.61%
	Total	42.124	364	16.466	232
	Average size:	0.116	0.071
Year to date, excluding investment bank exchangeables
					2005 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Merrill Lynch	5.952	22	16.72%	4	1.451	9	10.23%
2	Citigroup	5.361	17	15.06%	6	1.393	6	9.83%
3	Morgan Stanley	5.069	16	14.24%	1	2.163	10	15.25%
4	UBS	3.212	14	9.02%	10	0.712	6	5.02%
5	Lehman	3.189	7	8.96%	8	0.816	6	5.75%
6	Banc of America	2.968	18	8.34%	5	1.408	7	9.93%
7	Goldman Sachs	2.922	11	8.21%	3	1.759	8	12.41%
8	JPMorgan	2.906	13	8.16%	9	0.782	8	5.52%
9	Deutsche Bank	1.058	4	2.97%	2	2.010	9	14.18%
10	Credit Suisse	0.923	7	2.59%	7	0.918	6	6.47%
	Total	35.595	70	14.178	54
	Average size:	0.509	0.263
Year to date, investment bank exchangeables only
	Underwriter	Amount	No.	Share
1	UBS	2.993	35	29.62%
2	Morgan Stanley	2.319	69	22.96%
3	Goldman Sachs	1.132	37	11.21%
4	Citigroup	1.012	30	10.02%
5	Merrill Lynch	0.868	15	8.59%
6	Lehman	0.589	24	5.83%
7	JPMorgan	0.292	48	2.89%
8	Barclays	0.247	85	2.44%
9	Wachovia	0.198	20	1.96%
10	Banc of America	0.198	7	1.96%
	Total	10.102	495
	Average size:	0.020
Q2, including investment bank exchangeables
					2005 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Citigroup	3.984	20	16.14%	6	0.782	8	9.37%
2	Morgan Stanley	3.914	31	15.85%	5	0.844	12	10.11%
3	Merrill Lynch	3.179	12	12.88%	4	0.959	5	11.48%
4	Goldman Sachs	3.016	17	12.21%	2	1.265	10	15.15%
5	Banc of America	2.481	13	10.05%	3	1.026	5	12.28%
6	UBS	1.995	9	8.08%	8	0.434	2	5.19%
7	JPMorgan	1.655	10	6.70%	11	0.125	1	1.50%
8	Lehman	1.653	9	6.70%	7	0.558	6	6.68%
9	Deutsche Bank	0.742	6	3.01%	1	1.500	4	17.96%
10	Wachovia	0.603	6	2.44%	16	0.023	3	0.28%
	Total	24.689	191	8.350	102
	Average size:	0.129	0.082
Q2, excluding investment bank exchangeables
					2005 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Citigroup	3.605	11	15.64%	5	0.546	2	7.61%
2	Morgan Stanley	3.295	11	14.29%	8	0.408	3	5.69%
3	Merrill Lynch	3.179	12	13.79%	4	0.683	3	9.53%
4	Goldman Sachs	2.825	10	12.25%	2	1.206	4	16.81%
5	Banc of America	2.481	13	10.76%	3	1.026	5	14.30%
6	UBS	1.995	9	8.65%	7	0.434	2	6.05%
7	JPMorgan	1.651	9	7.16%	11	0.125	1	1.74%
8	Lehman	1.475	2	6.40%	6	0.538	4	7.50%
9	Deutsche Bank	0.733	2	3.18%	1	1.500	4	20.91%
10	Wachovia	0.525	2	2.28%
	Total	23.054	45	7.174	18
	Average size:	0.512	0.399
Q2, investment bank exchangeables only
	Underwriter	Amount	No.	Share
1	Morgan Stanley	0.997	29	30.39%
2	Citigroup	0.501	14	15.27%
3	Goldman Sachs	0.482	15	14.69%
4	UBS	0.284	16	8.67%
5	JPMorgan	0.217	31	6.62%
6	Lehman	0.196	9	5.97%
7	Merrill Lynch	0.151	6	4.61%
8	Barclays	0.115	44	3.50%
9	Banc of America	0.108	3	3.29%
10	Wachovia	0.096	8	2.94%
	Total	3.280	248
	Average size:	0.013
June, including investment bank exchangeables
					2005 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Citigroup	0.224	3	22.50%	1	0.144	3	30.46%
2	JPMorgan	0.169	22	16.93%	9	0.008	2	1.78%
3	Goldman Sachs	0.161	5	16.12%	7	0.020	1	4.23%
4	Morgan Stanley	0.137	10	13.75%	2	0.104	3	22.01%
5	Wachovia	0.070	4	6.99%	8	0.009	1	1.96%
6	UBS	0.067	3	6.72%
7	Merrill Lynch	0.045	2	4.47%	3	0.094	2	19.90%
8	Lehman	0.041	2	4.06%	4	0.035	3	7.35%
9	Barclays	0.036	16	3.64%	5	0.025	11	5.38%
10	LaSalle	0.016	9	1.56%
	Total	0.997	89	0.472	36
	Average size:	0.011	0.013
June, excluding investment bank exchangeables
					2005 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	UBS	1.995	9	21.11%	5	0.434	2	8.84%
2	Merrill Lynch	1.585	5	16.77%	7	0.334	2	6.80%
3	JPMorgan	1.141	6	12.07%
4	Citigroup	1.057	6	11.18%	3	0.546	2	11.13%
5	Morgan Stanley	0.878	4	9.29%	8	0.259	1	5.27%
6	Banc of America	0.792	4	8.38%	4	0.434	2	8.84%
7	Goldman Sachs	0.542	3	5.73%	2	0.919	3	18.72%
8	Wachovia	0.525	2	5.56%
9	Piper Jaffray	0.374	1	3.95%
10	Credit Suisse	0.353	3	3.74%	9	0.259	1	5.27%
	Total	9.450	19	4.907	11
	Average size:	0.497	0.446
June, investment bank exchangeables only
	Underwriter	Amount	No.	Share
1	Citigroup	0.224	3	22.50%
2	JPMorgan	0.169	22	16.93%
3	Goldman Sachs	0.161	5	16.12%
4	Morgan Stanley	0.137	10	13.75%
5	Wachovia	0.070	4	6.99%
6	UBS	0.067	3	6.72%
7	Merrill Lynch	0.045	2	4.47%
8	Lehman	0.041	2	4.06%
9	Barclays	0.036	16	3.64%
10	LaSalle	0.016	9	1.56%
	Total	0.997	89
	Average size:	0.011
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.

• 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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