DealZone

Keeping score: U.S. bonds, European convertibles, Chinese IPOs

September 18, 2009

From this week’s Thomson Reuters Investment Banking Scorecard:

· US CORPORATE DEBT TOPS $20 BILLION, BREAKS RECORD

For the second consecutive week, the volume of corporate investment grade debt in the US market topped the $20 billion mark, bolstered by benchmark names in the energy & power and financial sectors.   Shell International Finance raised $5 billion via Morgan Stanley, Bank of America Merrill Lynch and Deutsche Bank, while Canada’s Cenovus Energy raised $3.5 billion this week.

Investment grade debt activity from non-financial issuers totals $372.3 billion for year-to-date 2009, already besting the previous all-time record for annual non-financial activity set in 2001 when $360.5 billion in new corporate issues were brought to market.

· EUROPEAN CONVERTIBLE BONDS UP 50%
While global convertible bond activity is down 46% over 2008, the market for convertible bonds in Europe has picked up dramatically, with $24.1 billion in new convertible offerings – a 50% year-over-year increase.  Issuers in the materials, financial and industrial sectors account for nearly 60% of this year’s volume in Europe.  Deals from Anglo American, Arcelor Mittal and Alcatel Lucent top the list of convertible offerings this year.

Morgan Stanley leads the year-to-date European convertible bond league table with $4.6 billion or 19.2% of overall activity from 17 new issues this year.  BNP Paribas and Calyon round out the top three underwriters.

· CHINESE IPOs UP 7% OVER 2008

With two multi-billion dollar initial public offerings this week, Chinese IPO activity totals $17.9 billion for year-to-date 2009, a 7% increase over last year at this time and one of the few markets to see gains over 2008.  China Metallurgical Construction Corp raised $2.4 billion in the second largest Chinese IPO this year, while China National Pharmaceutical Group (Sinopharm) raised $1.1 billion on the Hong Kong Stock Exchange.

IPO activity in the industrials sector comprises 57% of year-to-date volume in China this year, followed by materials with 15% and healthcare with 10%.

Post Your Comment

We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/