Morgan Stanley’s Role In Largest Equity Deals For Q2 Helps It Pocket More Than $400 Million In Fees

by Trefis Team
Morgan Stanley
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The 5 largest U.S investment banks reported $1.56 billion in equity underwriting fees in Q2 2017 – almost 30% of the total figure for the industry.

Notably, the wallet share for these U.S. banks in the global equity underwriting industry fell from an average of over 32% over the last five quarters to below 30% in Q2 2017. This can primarily be attributed to the sizable recovery in global equity capital market activity from the subpar levels seen since Q2 2015. While Q1 2017 was a particularly strong quarter for U.S. investment banks due to a jump in U.S. IPO activity, gains for Q2 were largely witnessed in the EMEA (Europe, Middle East and Africa) region – which resulted in a sequential reduction in market share for the U.S. banks.

Total equity underwriting fees for the industry are taken from Thomson Reuters’ latest investment banking league tables. Figures for individual banks are as reported in their quarterly results.

The five largest U.S. investment banks compete fiercely in the global equity underwriting industry, with top honors in terms of the highest equity underwriting fees shifting among Goldman Sachs, JPMorgan, Morgan Stanley and Bank of America from quarter to quarter since early 2011. Morgan Stanley was able to secure the top spot in the rankings this time around, thanks to its lead role in the three largest U.S. equity capital issuances for the quarter – from Becton Dickinson, Altice USA as well as Healthcare Trust of America. At the same time, the investment bank was also one of the lead underwriters in Deutsche Bank’s $8.5-billion rights issue – the largest equity deal that was completed this quarter.

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

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