$68.29 billion high-yield bonds issued year to date

* Citigroup top high yield underwriter year to date

* $44.48 billion high-yield bonds issued in second quarter

* Citigroup top high yield underwriter in second quarter

* $17.05 billion high-yield bonds issued in June

* JP Morgan top high yield underwriter in June

By Peter Heap

New York, June 30 – High-yield bond issuance powered ahead in June, with a total of $17.05 billion of new junk debt coming to market, according to data compiled by Prospect News.

Although down $1.37 billion from the $18.42 billion underwritten in May, it is still one of the biggest months ever for issuance. May saw the largest issuance in Prospect News’ records, which go back to 1999, and it appears to be the all-time record holder. The Wall Street Journal recently quoted Thomson Financial – which uses slightly different criteria to Prospect News – as saying April 1998 was the previous monthly high at $17.9 billion. Before June the second biggest month in Prospect News’ records was May 1999 with $16.6 billion. Prospect News’ data covers new dollar-denominated high-yield bonds offered in the U.S.

Meanwhile Citigroup held on to its position as number one underwriter for the year so far, having handled $11.27 billion in 59 deals.

The firm was also number one for the second quarter although JP Morgan placed first in June with $2.66 billion in 16 deals.

CSFB, which ranked number one in 2002, is in second position for the first half with $10.51 billion in 62 deals.

JP Morgan’s June performance was largely the result of being bookrunner or joint bookrunner on more deals than any other investment bank; no single deal stood out for its size, not least because the month’s largest transaction, Xerox Corp.’s $1.25 billion in two tranches, was split between six bookrunners.

Citigroup, however, was helped by being sole bookrunner on the second quarter’s largest offering, $1.8 billion in two parts for AES Corp.

At $68.29 billion, overall issuance has already passed the $59.65 billion total for all of 2002 and the $44.44 billion for all of 2000. And it looks set to beat 2001’s $77.37 billion as well – the $9.08 billion difference is less than a month of activity at the current pace although the arrival of the summer vacation season will likely slow the flow of deals.

Year to date

2002 comparables

	Underwriter	Amount	No.	Rank	Amount	No.
	(millions)	(millions)
1.	Citigroup	$11,276.03	59	2	$4,556.32	31
2.	CSFB	$10,885.11	63	1	$7,178.69	49
3.	JP Morgan	$7,534.74	51	5	$3,858.24	29
4.	Deutsche Bank	$7,210.54	50	3	$4,277.15	27
5.	Banc of America	$6,133.95	44	4	$3,867.25	29
6.	Lehman	$5,560.57	34	6	$3,521.90	18
7.	Goldman Sachs	$4,661.88	27	7	$3,157.28	9
8.	UBS	$3,721.46	28	9	$2,400.79	14
9.	Morgan Stanley	$3,413.71	17	8	$2,710.58	16
10.	Bear Stearns	$2,720.35	19	11	$974.33	7
11.	Wachovia	$1,376.55	12	13	$505.59	6
12.	Merrill Lynch	$1,346.07	11	10	$986.38	7
13.	Dresdner KW	$875.00	1	12	$519.80	4
14.	CIBC	$873.93	8	14	$418.88	5
15.	Jefferies	$588.53	5	15	$379.41	5
	Total	$68,285.33	248	$40,188.36	168
	Average	$275.34	$239.22
Second quarter
					2002 comparables
	Underwriter	Amount	No.	Rank	Amount	No.
	(millions)	(millions)
1.	Citigroup	$7,727.02	40	2	$2,404.88	15
2.	CSFB	$6,267.31	37	1	$4,135.18	31
3.	JP Morgan	$5,754.14	40	4	$2,285.25	18
4.	Deutsche Bank	$3,996.46	31	5	$1,947.23	14
5.	Banc of America	$3,805.65	30	6	$1,796.91	13
6.	Lehman	$3,796.73	24	3	$2,340.86	12
7.	Goldman Sachs	$2,629.82	17	7	$1,660.44	5
8.	UBS	$2,444.19	19	9	$1,395.38	9
9.	Bear Stearns	$2,189.31	16	10	$738.43	5
10.	Morgan Stanley	$2,080.32	14	8	$1,551.12	9
	Total	$44,479.28	168	$21,857.85	94
	Average	$264.76	$232.53
June
					2002 comparables
	Underwriter	Amount	No.	Rank	Amount	No.
	(millions)	(millions)
1.	JP Morgan	$2,664.77	16	4	$859.77	7
2.	CSFB	$2,410.00	11	1	$1,896.44	12
3.	Banc of America	$1,604.16	11	3	$879.34	6
4.	Citigroup	$1,527.58	12	2	$968.09	7
5	Deutsche Bank	$1,473.75	13	5	$733.09	6
6.	Lehman	$1,423.33	8	6	$524.63	2
7.	Morgan Stanley	$1,194.86	7	7	$465.15	3
8.	Bear Stearns	$1,179.73	8	13	$86.43	1
9.	UBS	$1,095.72	10	9	$237.88	2
10.	Goldman Sachs	$943.33	6	8	$260.44	2
	Total	$17,048.73	62	$7,309.12	32
	Average	$274.98	$228.41
Prospect News High Yield Underwriter Rankings

Criteria

* The tables include all dollar-denominated offerings sold in the U.S. as public or Rule 144A deals reported to Prospect News.

* Issues maturing in 397 days or less are excluded.

* Convertibles, trust preferreds, capital securities and preferred stock are excluded.

* Fixed-rate medium-term notes with a face value above $100 million are included. All other MTNs are excluded.

* Deals rated investment-grade by either Standard & Poor's or Moody's Investors Service are excluded but deals not rated by both are included.

* Offerings are included in the time period in which they price.

* Amounts are based on the total sales price (face amount multiplied by the offering price). The full amount is credited to the bookrunner. For multiple leads, the total value is divided equally among joint bookrunners.

* Units made up of a bond and a warrant are included; other units are excluded.

* Sovereign issues are excluded.

* Each tranche is counted as a separate deal.

* Passthroughs, collateral trust and equipment trust certificates are included.

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