Investment Banking Weekly Scorecard - October 25, 2012

US-Dollar High Yield Breaks All-Time Annual Record

Multi-billion dollar offerings from Plains Exploration & Production ($3 billion) and Virgin Media Finance ($1.5 billion) pushed the volume of US-dollar denominated high yield issuance to $268.3 billion for year-to-date 2012, breaking the all-time annual record set during full year 2010 ($264.1 billion). With a 38% increase over year-to-date 2011, US-dollar denominated high yield issuance has seen year-over-year growth in every industry sector except real estate and industrials this year.

Energy and power, financials and media and entertainment companies account for nearly 50% of all US-dollar denominated high yield issuance this year. JP Morgan leads all US-dollar high yield underwriting this year with 12.3 market share, while Bank of America Merrill Lynch follows closely behind in second place.

Oil & Gas M&A Hits $267 billion, Up 14% Over 2011

The combined $59 billion wind down of BP PLC's Russian oil business to Rosneft brings the volume of worldwide oil & gas deal making to $267 billion so far this year, a 14% increase compared to year-to-date 2011 and just 5% below the largest year-to-date period for M&A in sector, $282 billion announced in 2010. Worldwide energy & power M&A totals $365 billion for year-to-date 2012, a decline of 12% compared to the year ago period.

Citi, which advised Rosneft along with Bank of America Merrill Lynch, ranks as the top advisor for worldwide oil & gas deal making this year, with $99.8 billion from 24 deals. Citi has advised on five of the top 10 announced oil & gas M&A deals this year. Bank of America Merrill Lynch ranks second in the sector, followed by Goldman Sachs and Credit Suisse.

European ECM Remains at Decade Low

This week's $1.2 billion block trade from Dutch cable provider, Ziggo NV, takes the volume of European equity capital markets activity so far during 2012 to $96 billion, a 29% decrease from a year ago and the slowest year-to-date period for European ECM activity since 2002. Despite the year-over-year declines, activity in the healthcare and telecom sectors has more than doubled over last year's totals. Consumer products issuance has registered a 34% increase and media, powered by Ziggo's IPO and two follow-ons this year, is up 17% over 2011.

Goldman Sachs, with 12.4% of the market, leads all ECM bookrunners in Europe this year, followed by Deutsche Bank which has retained second place. JP Morgan, with an increase of 2.9 market share points, has moved from sixth last year to third.

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Thomson Reuters
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