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Securitization

Bond issuance tops syndi loans for first time ever

World issuance of corporate bonds has exceeded the volume of syndicated lending for the first time ever, according to Dealogic.

  • 09 Oct 2009
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No less than $1.31tr of corporate bonds have been issued so far in 2009, surpassing the shrunken $1.08tr of syndicated lending. These figures make a stark contrast with 2007, when, in the heady days of the loan market’s peak, volumes reached $4.16tr, or four and a half times issuance of corporate bonds.

The fresh data confirmed for many a shift between the two markets that has become increasingly apparent this year, as borrowers have struggled to fund themselves in a beleaguered bank market.

"It does show the tables have really turned," said one corporate bond banker this week. "The questions are, will it continue like this, and is this a permanent shift of affairs?"

Most bond syndicate bankers believe the change will persist, at least throughout 2010. While corporate bond issuance looks set to slow from now until the end of this year, as most issuers have already fulfilled their refinancing needs even into next year, borrowers are expected to rush back into the bond market in January.

"At this point, we’re really only going to see opportunistic deals from the household names and frequent issuers," said a syndicate banker. "But you’ll see borrowers with renewed refinancing needs by next year lining up to go to the bond market.

"There is also the fact that this market is opening up to a lot more names which in the past would have been typical loan clients, so it will be interesting to see how that dynamic develops."

Loans bankers, meanwhile, stressed that the bank lending market was slowly on the mend, with deals finding good demand and pricing finally dropping again — partly as banks are trying to compete with the bond market.

The data from Dealogic also showed that that the shift between the markets was evident in both the US and Europe, where bond volume is outpacing loans by 25% and 61%
respectively.
  • 09 Oct 2009

CLO

IssuerArrangerSize ($M)
TCW Asset Management Co.,Figueroa CLO 2014-1 Wells Fargo413.06
Regiment Capital Advisors, Cavalry CLO VDeutsche Bank368.45
Voya Alternative Asset Management, Voya 2014-4JPMorgan607.00

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 18 Nov 2014
1 JPMorgan 62,197.58 156 10.31%
2 Barclays 54,615.37 137 9.05%
3 Bank of America Merrill Lynch 53,519.04 153 8.87%
4 Citi 53,036.17 137 8.79%
5 Credit Suisse 52,682.77 126 8.73%

Financing Record (MBS)

IssuerPriceTotal Amount ($ Millions)
Oxford Finance 2014-1100.00204.00
DROCK 2014-599.98250.00
DROCK 2014-4100.00250.00

Priced Deals

IssuerMaturitySize
Westpac28-Nov-17350
ING Bank27-Nov-14250
Erste Group Bank26-May-25500

Bookrunners of European Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 18 Nov 2014
1 JPMorgan 10,126.99 20 6.77%
2 Bank of America Merrill Lynch 5,385.41 13 3.60%
3 Deutsche Bank 5,357.92 17 3.58%
4 HSBC 4,482.67 12 3.00%
5 Citi 4,083.79 11 2.73%