Quick Sales Signal High Yield May Pick Up

The completion of two drive-by high-yield offerings late last week could signal the recent speculative-grade issuance drought may be coming to an end.

  • 04 Mar 2005
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The completion of two drive-by high-yield offerings late last week could signal the recent speculative-grade issuance drought may be coming to an end. Host Marriott and Allied Waste Industries, each regular high-yield issuers, sold drive-by deals--which tend to be sold by savvy issuers who spot an attractive funding window--signaling borrowers may start to tap the market again, said Marty Fridson, ceo of FridsonVision, an independent research outfit. Weaker spreads to start the year had made funding costs more expensive and dampened new sales, but a recent tightening of spreads is creating a healthier pipeline, he explained.

The possibility is a welcome one for investors who are hungry for new paper in an environment where yield has become highly sought after. "The market could certainly absorb new issuance, but companies just don't want to take out new debt," griped one investor. "There has been a disconnect between investor enthusiasm and issuance" with corporations' reluctance to spend cash, said Chris Garman, head of high-yield strategy at Merrill Lynch.

Other factors are also expected to lead to a pick up in new sales. The annual rite of post-bonus resignations and February school vacations has kept issuance low, researchers said.

  • 04 Mar 2005

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 352,540.12 1323 9.09%
2 Bank of America Merrill Lynch 315,574.44 1093 8.13%
3 JPMorgan 314,826.88 1433 8.11%
4 Goldman Sachs 234,193.07 776 6.04%
5 Barclays 226,473.92 879 5.84%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 34,312.86 161 6.59%
2 Deutsche Bank 34,194.98 116 6.57%
3 Bank of America Merrill Lynch 31,113.25 94 5.98%
4 BNP Paribas 27,479.75 167 5.28%
5 SG Corporate & Investment Banking 23,982.83 136 4.61%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 19,536.02 78 8.91%
2 Morgan Stanley 16,323.54 83 7.44%
3 Citi 15,667.80 92 7.14%
4 UBS 15,208.47 58 6.94%
5 Goldman Sachs 13,487.36 72 6.15%