JPMorgan’s Q1 Debt Originations Were The Best By Any Bank In Five Years
Global debt capital markets resumed the growth story they began early last year in Q1 2017, after a brief hiatus in Q4 2016, as companies around the globe raised $1.76 trillion in debt for the quarter – making it one of the best periods for the debt origination industry since the economic downturn of 2008. [1] While the seasonal nature of the business had a positive impact on activity levels for the first quarter, deal volumes also benefited from record high levels of investment-grade corporate debt issuances in the U.S. and a sharp increase in debt origination volumes for India, Malaysia and Brazil.
The strong international presence of the five largest U.S. investment banks helped them capitalize on the strong activity levels – allowing them to capture almost 30% of the market for the quarter.
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 returned to the top spot in the debt capital market league tables after falling to the #3 position in Q4 2016, as the banking giant played a role in deals worth nearly $130 billion for the quarter. Notably, this was the largest reported quarterly deal size for any investment bank in the last five years – since JPMorgan helped originate debt securities of $130.1 billion in Q1 2012. The bank’s strength in the industry comes from its leading position across debt security classes in the U.S. and EMEA (Europe, Middle East and Africa) regions. It should be noted that JPMorgan has held the #1 position in terms of total debt origination deals completed in all but three quarters since 2012 (Q3 2015, Q4 2015 and Q4 2016).
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.
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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- Global Debt Capital Markets Q1 2017, Thomson Reuters Deals Intelligence [↩]