Keeping score: NBC, asset-backed bonds
Highlights from this week’s Thomson Reuters Investment Banking Scorecard:
COMCAST-NBC UNIVERSAL LIFTS MEDIA M&A
The proposed combination of Comcast and NBC Universal into a 51:49 joint venture brings the announced volume of mergers in the media and entertainment sector to $79.7 billion, a 31% decrease from last year at this time.
The transaction is valued at $14.4 billion, which signifies GE’s net asset contribution and ranks as the second biggest transaction in the sector this year, after DirecTV Group’s $14.5 billion merger with Liberty Entertainment in May. Overall, worldwide M&A totals $1.9 trillion, down 33% compared to 2008 levels.
SECURITIZATIONS PULL AHEAD OF 2008 LEVELS
The volume of new asset-backed and mortgage backed securities total $498.9 billion for year-to-date 2009, a 3% increase over 2008 levels. After a nearly 85% decline in 2008, the market for securitizations of residential mortgages, credit card receivables and auto receivables has slowly returned aided by US government guarantee programs.
Issuers in the United States account for 38% of overall activity this year, followed by UK-based issuers with 15%.
ASIA PACIFIC M&A DOWN 11%
Asia Pacific M&A activity totals $367.5 billion for year-to-date 2009, an 11% decrease from 2008 levels. Consolidation in the financial, high technology and energy and power sectors accounts for 45% of announced deal volume this year.
High technology merger activity has more than doubled in the region, while activity in the telecommunications and materials sectors has seen declines of 77% and 45%, respectively.