How Did Major U.S. Investment Banks Fare In The Global Debt Origination Industry Over Q3?

October 3rd, 2016 by Trefis Team
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Global debt capital markets continued to show strong levels of activity over the third quarter of 2016, as companies around the globe raised more than $2 trillion in debt for the first time in a quarter since the economic downturn of 2008. [1] Growth in the debt origination business was driven primarily by record investment-grade corporate debt issuance in the U.S., coupled with elevated government and agency offerings over the period.

Notably, with over $5.5 trillion in total debt origination deals completed worldwide over the first three quarters, 2016 is already one of the best years ever for the industry in terms of total deal volume. To put things in perspective, the total deal size for full-year 2015 was $5.3 trillion. The five largest U.S. investment banks did well to capture a ~24% share of the market.

IB_QA_US_DCMShare_16Q3

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Debt origination volumes for individual banks are taken from Thomson Reuters’ latest investment banking league tables. It should be noted that the largest debt capital market deals employ more than one investment bank, so the market share figures are not exclusive.

JPMorgan continued to dominate the industry, with the diversified banking giant grabbing the largest market share for the third consecutive quarter thanks to its strong grip across debt security classes in the U.S. and EMEA (Europe, Middle East and Africa) regions. Notably, JPMorgan has held the #1 position in terms of debt origination deals completed in all but two quarters since Q1 2012.

You can see how changes in JPMorgan’s share of the debt origination industry impact our price estimate for the bank’s shares by making changes to the chart below.

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Notes:
  1. Global Debt Capital Markets Q3 2016, Thomson Reuters Deals Intelligence [↩]