How Have Debt Origination Deal Volumes For U.S. Investment Banks Changed In The Last 5 Quarters?

-12.13%
Downside
63.24
Market
55.57
Trefis
C: Citigroup logo
C
Citigroup

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.

IB_QA_US_DCMSizeChange_17Q1

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.

Relevant Articles
  1. Rising Only Half the S&P’s Gain In 2023, Where Is Citigroup Stock Headed?
  2. What To Expect From Citigroup Stock In Q3?
  3. Citigroup Stock Is Trading Below Its Intrinsic Value
  4. Citigroup Stock Is Trading Below Its Intrinsic Value
  5. Citigroup Stock Has Growth Potential
  6. Is Citigroup Stock Fairly Priced?

IB_QA_US_DCMShareChange_17Q1

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:

 

See full Trefis analysis for Goldman SachsJPMorganMorgan StanleyBank of America | Citigroup

View Interactive Institutional Research (Powered by Trefis):
Global Large CapU.S. Mid & Small CapEuropean Large & Mid Cap
More Trefis Research