September breaks issuance record; junk closes in on $200 billion level

• Bank of America top U.S. high-yield bond underwriter year to date

• Junk market issuance totals $198.82 billion for year to date

New York, Sept. 30 - September proved to be a month of records for the high-yield market - and it ended with junk poised to break through a notable barrier.

The month saw U.S. high yield push past the previous biggest total for junk issuance in a year, and did so even though there are still three full months before 2010 comes to a close.

September also became the busiest single month ever for high yield.

And the year-to-date total of $198.82 billion at the end of the month left the market in position to break through the $200 billion barrier in a matter of days.

September itself saw $37.42 billion of junk bonds come to the U.S. market, a new record, surpassing the old high of $34.69 billion set in April.

On a global basis, the figures are similar, with issuance actually having broken through $200 billion at $207.16 billion year to date. September's volume was $39.43 billion.

Europe saw $5.81 billion of deals in September, bringing the year-to-date total to $33.84 billion.

In the league tables, Bank of America added a second month to its title of leading underwriter of junk bonds in the U.S. market for the year to date, according to data compiled by Prospect News.

Bank of America took the top spot last month, pushing ahead of JPMorgan, which had been the top underwriter in the U.S. market for each month of 2010 and for all of 2009.

Looking down the table, the banks in the next two places were unchanged, with Credit Suisse still at third and Citi at fourth. Deutsche moved up a place to fifth, easing Goldman Sachs into the number six position.

Bank of America also remained number one for global high yield.

Deutsche Bank remained the top underwriter for European high yield.

The U.S. market figures cover dollar-denominated high-yield deals issued in the United States as registered offerings or under Rule 144A and include all issuers, regardless of their home country.

Year to date, U.S. market, all issuers

2009 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Bank of America	28.347	208	14.26%	1	17.702	124	16.81%
2	JPMorgan	25.833	172	12.99%	2	17.281	113	16.41%
3	Credit Suisse	21.506	117	10.82%	5	8.847	54	8.40%
4	Citigroup	16.491	107	8.29%	3	11.175	64	10.61%
5	Deutsche Bank	15.481	110	7.79%	4	9.534	64	9.05%
6	Goldman Sachs	14.432	93	7.26%	7	8.142	48	7.73%
7	Morgan Stanley	13.668	89	6.87%	6	8.535	42	8.11%
8	Barclays	11.219	92	5.64%	9	3.921	34	3.72%
9	UBS	9.445	71	4.75%	12	1.893	15	1.80%
10	Wells Fargo	8.233	71	4.14%	10	2.798	25	2.66%
	Total	198.822	454	105.302	240
	Average size:	0.438	0.439
Year to date, U.S. market, industrialized country issuers
					2009 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Bank of America	25.259	187	14.83%	1	16.951	119	16.93%
2	JPMorgan	23.222	157	13.64%	2	16.596	107	16.57%
3	Credit Suisse	18.728	98	11.00%	5	8.454	50	8.44%
4	Citigroup	15.159	97	8.90%	3	10.865	60	10.85%
5	Goldman Sachs	13.576	88	7.97%	6	8.142	48	8.13%
6	Deutsche Bank	12.682	94	7.45%	4	9.203	63	9.19%
7	Morgan Stanley	12.283	78	7.21%	7	7.266	36	7.26%
8	Barclays	10.760	88	6.32%	9	3.921	34	3.92%
9	UBS	8.278	62	4.86%	12	1.893	15	1.89%
10	Wells Fargo	8.233	71	4.84%	10	2.798	25	2.79%
	Total	170.274	381	100.133	224
	Average size:	0.447	0.447
Year to date, global market, industrialized country issuers
					2009 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Bank of America	26.811	197	12.94%	1	16.951	119	15.03%
2	JPMorgan	25.513	172	12.32%	2	16.904	110	14.98%
3	Credit Suisse	21.029	111	10.15%	5	8.865	55	7.86%
4	Citigroup	17.899	116	8.64%	3	11.793	63	10.45%
5	Deutsche Bank	16.806	116	8.11%	4	10.423	69	9.24%
6	Goldman Sachs	14.960	96	7.22%	6	8.709	51	7.72%
7	Morgan Stanley	13.479	86	6.51%	7	7.313	37	6.48%
8	Barclays	13.446	106	6.49%	8	4.446	36	3.94%
9	UBS	8.442	64	4.07%	13	1.893	15	1.68%
10	Wells Fargo	8.289	72	4.00%	11	2.798	25	2.48%
	Total	207.163	452	112.818	245
	Average size:	0.458	0.460
Year to date, European currencies, industrialized country issuers
					2009 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Deutsche Bank	4.125	22	12.19%	2	1.219	6	11.07%
2	Citigroup	2.740	19	8.10%	5	0.928	3	8.42%
3	Barclays	2.686	18	7.94%	10	0.525	2	4.77%
4	BNP	2.587	13	7.64%	4	0.949	5	8.61%
5	Credit Suisse	2.301	13	6.80%	12	0.394	4	3.58%
6	RBS	2.204	16	6.51%	1	1.437	5	13.05%
7	JPMorgan	2.147	14	6.34%	13	0.308	3	2.79%
8	HSBC	1.634	10	4.83%	15	0.275	2	2.50%
9	Bank of America	1.552	10	4.59%
10	Goldman Sachs	1.384	8	4.09%	9	0.567	3	5.15%
	Total	33.842	60	11.014	17
	Average size:	0.564	0.648
Third quarter, U.S. market, all issuers
					2009 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Bank of America	11.591	80	14.52%	2	5.713	48	12.78%
2	Credit Suisse	8.316	49	10.41%	3	4.880	24	10.91%
3	JPMorgan	8.129	57	10.18%	1	7.191	48	16.08%
4	Deutsche Bank	7.877	48	9.87%	4	4.424	27	9.89%
5	Citigroup	7.524	46	9.42%	5	4.391	24	9.82%
6	Morgan Stanley	6.019	39	7.54%	7	3.115	17	6.97%
7	Goldman Sachs	5.399	36	6.76%	6	3.223	20	7.21%
8	Barclays	4.500	31	5.64%	9	2.190	18	4.90%
9	Wells Fargo	3.749	29	4.69%	8	2.798	25	6.26%
10	UBS	3.586	22	4.49%	12	0.888	7	1.99%
	Total	79.848	170	44.716	108
	Average size:	0.470	0.414
Third quarter, U.S. market, industrialized country issuers
					2009 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Bank of America	10.379	71	15.21%	2	5.151	44	12.45%
2	Credit Suisse	7.316	43	10.72%	3	4.640	22	11.21%
3	JPMorgan	7.233	53	10.60%	1	6.659	44	16.09%
4	Citigroup	7.023	42	10.29%	5	4.234	22	10.23%
5	Deutsche Bank	6.388	41	9.36%	4	4.424	27	10.69%
6	Goldman Sachs	5.399	36	7.91%	6	3.223	20	7.79%
7	Morgan Stanley	5.235	34	7.67%	9	2.177	12	5.26%
8	Barclays	4.368	30	6.40%	8	2.190	18	5.29%
9	Wells Fargo	3.749	29	5.49%	7	2.798	25	6.76%
10	UBS	2.886	18	4.23%	12	0.888	7	2.15%
	Total	68.249	141	41.384	97
	Average size:	0.484	0.427
Third quarter, global market, industrialized country issuers
					2009 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Bank of America	10.698	73	13.05%	2	5.151	44	10.29%
2	Citigroup	8.689	53	10.60%	5	4.752	24	9.49%
3	Credit Suisse	8.402	48	10.25%	4	4.899	25	9.79%
4	JPMorgan	8.059	57	9.83%	1	6.814	45	13.61%
5	Deutsche Bank	7.962	48	9.71%	3	4.951	29	9.89%
6	Morgan Stanley	6.076	38	7.41%	10	2.177	12	4.35%
7	Goldman Sachs	5.820	39	7.10%	6	3.750	22	7.49%
8	Barclays	4.880	35	5.95%	8	2.715	20	5.42%
9	Wells Fargo	3.749	29	4.57%	7	2.798	25	5.59%
10	UBS	2.886	18	3.52%	14	0.888	7	1.77%
	Total	81.992	169	50.065	106
	Average size:	0.485	0.472
September, U.S. market, all issuers
					2009 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Bank of America	4.750	33	12.69%	4	2.566	20	12.59%
2	Deutsche Bank	3.889	24	10.39%	6	1.644	10	8.07%
3	Credit Suisse	3.749	24	10.02%	3	2.595	12	12.73%
4	JPMorgan	3.635	27	9.72%	1	3.273	18	16.07%
5	Citigroup	2.984	17	7.97%	2	2.676	13	13.13%
6	Morgan Stanley	2.840	18	7.59%	5	1.824	11	8.95%
7	Barclays	2.617	18	6.99%	7	1.521	10	7.47%
8	Goldman Sachs	2.571	20	6.87%	9	1.005	5	4.93%
9	UBS	2.407	13	6.43%	10	0.670	4	3.29%
10	Wells Fargo	1.635	12	4.37%	8	1.040	10	5.10%
	Total	37.415	80	20.375	44
	Average size:	0.468	0.463
September, U.S. market, industrialized country issuers
					2009 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Bank of America	4.066	29	12.59%	4	2.193	18	12.01%
2	JPMorgan	3.334	25	10.32%	1	2.898	16	15.87%
3	Credit Suisse	3.299	21	10.21%	3	2.445	11	13.39%
4	Deutsche Bank	3.155	21	9.77%	5	1.644	10	9.00%
5	Citigroup	2.984	17	9.24%	2	2.676	13	14.66%
6	Goldman Sachs	2.571	20	7.96%	9	1.005	5	5.51%
7	Barclays	2.485	17	7.69%	6	1.521	10	8.33%
8	Morgan Stanley	2.442	16	7.56%	7	1.101	8	6.03%
9	UBS	1.707	9	5.28%	10	0.670	4	3.67%
10	Wells Fargo	1.635	12	5.06%	8	1.040	10	5.69%
	Total	32.299	67	18.255	38
	Average size:	0.482	0.480
September, global market, industrialized country issuers
					2009 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Bank of America	4.278	30	10.85%	4	2.193	18	9.71%
2	Citigroup	4.140	23	10.50%	1	3.038	14	13.45%
3	Credit Suisse	3.898	24	9.89%	3	2.531	12	11.20%
4	JPMorgan	3.833	27	9.72%	2	2.898	16	12.83%
5	Deutsche Bank	3.368	22	8.54%	5	1.644	10	7.28%
6	Goldman Sachs	2.809	22	7.12%	10	1.005	5	4.45%
7	Morgan Stanley	2.543	17	6.45%	8	1.101	8	4.88%
8	Barclays	2.485	17	6.30%	6	1.607	11	7.11%
9	HSBC	1.998	6	5.07%
10	UBS	1.707	9	4.33%	13	0.670	4	2.97%
	Total	39.425	78	22.588	43
	Average size:	0.505	0.525
Prospect News High-Yield Underwriter Rankings

Criteria

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

• European tables cover deals denominated in currency of a European industrialized country.

• Global tables cover deals denominated in currency of an industrialized country.

• Amounts converted to dollars (if necessary) at rate shown in Federal Reserve's H.10 release on day of pricing.

• 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 more than $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.

• Best efforts and non-underwritten deals are excluded as are remarketings.

• The headquarters location of the parent company is used for the country criteria (i.e. registrations in tax havens and offshore finance subsidiaries are ignored).

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