Keeping score: bankruptcy boom

July 10, 2009

The Thomson Reuters Investment Banking scorecard lands again. Here are the highlights:

BAAT Offers Largest Auto Loan Securitization of 2009

A US asset-backed offering fell among the top global debt deals of the week, as Bank of America Auto Trust (BAAT) offered a $3.9 billion TALF-eligible auto loan securitization, the largest such ABS offering this year.  In total, auto loan backed issues have accounted for 35.7% of US ABS, the largest share of the approximately $80 billion so far in 2009.

As a whole, securitizations are down 30% in the US and 39% globally over 2008 levels.  This week marks the third largest week for ABS activity in the US during 2009 with $9.7 billion of issuance.

Bankruptcy-related M&A at Five Year High

Five bankruptcy-related M&A deals were announced this week, including the acquisition of venture-backed public company Nanogen by French investment holding company Financiere Elitech for $25.7 million.  Year-to-date, 173 bankruptcy-related deals have been announced, the highest level since the same period of 2004 when there were 202.

In 2009 the most bankruptcy-related M&A deals have occurred in the Industrials sector with 23.1%, followed by the media and entertainment sector with 16.2%.  By nation, US targets represent 83 deals or 48.0% of bankruptcy M&A.

Singapore Company Follow-On Activity at Record High

Among the largest equity deals of the week was a $984.6 million follow-on offering by Singapore-based Neptune Orient Lines.  Year-to-date, Singapore follow-on volume totals $7.8 billion from 20 issues, nearly 11 times higher than the same period in 2008 when volume was $707.3 million and the highest year-to-date volume ever.  Total equity and equity related volume in Singapore is also at all-time record levels in 2009, reaching $8.1 billion.

Equity and equity related volume in Asia Pacific stands at $75.6 billion so far this year, a 6% decrease from last year.

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