* 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 |
|
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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.
* 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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