How Have Debt Origination Deal Volumes For U.S. Investment Banks Changed In The Last 5 Quarters?
While the seasonal nature of the global debt capital markets usually results in elevated activity levels over the first quarter, Q1 2017 saw a particularly sharp increase in the number of U.S. corporates issuing debt to benefit from lower interest rates before the Fed follows through with its scheduled rate hikes. U.S. investment-grade bond issuances reached a record level of almost $400 billion – representing about 22% of the total $1.76 billion in debt issued by companies around the globe. This, in-turn, helped the five largest U.S. investment banks report an average debt origination deal size for the quarter in excess of $100 billion for the first time ever.
Debt origination volumes for individual banks were taken from Thomson Reuters’ investment banking league tables for the last five quarters. The table below captures the respective market shares for each of these banks over this period. The green-to-yellow shading for figures in a quarter should help compare the relative standings of these 5 banking giants in a particular quarter.
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.
As growth in the industry primarily came from the U.S., these banks also witnessed a jump in market share from an average of 25% over 2016 to almost 30% in Q1 2017. The chart below captures Citigroup’s share of the global debt origination market. You can see how changes to this metric affects our price estimate for the geographically diversified banking giant by modifying our forecast here.
See the links below for more information and analysis about the 5 largest U.S. investment banks:
- How Much In M&A Advisory Fees Did The 5 Largest U.S. Investment Banks Generate In 2016?
- How Much In Equity Underwriting Fees Did The 5 Largest U.S. Investment Banks Generate In 2016?
- How Much In Debt Origination Fees Did The 5 Largest U.S. Investment Banks Generate In 2016?
- How Much In Total Advisory & Underwriting Fees Did The 5 Largest U.S. Banks Earn In 2016?
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