Citigroup, Wells Fargo claim top convertible underwriter spot for July; JPMorgan still No. 1 YTD

By Abigail W. Adams

Portland, Me., July 31 – As underwriters of the largest deal to price in July, Citigroup Global Market Inc. and Wells Fargo Securities LLC emerged as the top underwriters for convertible securities in July.

However, J.P. Morgan Securities LLC remains the top underwriter for convertibles deals year-to-date with Morgan Stanley & Co. Inc. a close second, despite not making an appearance on the league table in July.

Citigroup and Wells Fargo each captured 30.69% of the $3.03 billion of convertible securities to price in July by underwriting Palo Alto Networks Inc.’s $1.69 billion convertible notes offering, the largest deal of the month, and Sempra Energy’s $575 million offering of series B mandatory convertible preferred stock.

However, July was a comparatively slow month for convertible issuance with $3.03 billion pricing over nine deals.

June saw $8.34 billion pricing in 26 deals and May $8.10 billion pricing in 23 deals, the highest volume months by dollar amount for new deals since June 2016.

JPMorgan remains top underwriter year-to-date with $6.40 billion pricing over 42 deals.

Morgan Stanley did not make an appearance on the July league table but remains the No. 2 convertible underwriter with $6.04 billion pricing in 36 deals.

JPMorgan emerged as the top underwriter in June, outpacing Morgan Stanley by a narrow margin, which had held the position since March.

JPMorgan also claimed the top underwriter spot for convertibles in 2017 with 14.68% of the market share.

However, convertible issuance is up 48% year-over-year with total new issuance $36.46 billion in 112 deals thus far in 2018, compared to $24.63 billion in 67 deals in 2017.

Goldman Sachs remains third and Bank of America fourth underwriter year-to-date. However, Citigroup now claims the fifth spot with Barclays moving to seventh behind Wells Fargo.

U.S. market, year to date

2017 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	6.403	42	17.56%	1	3.616	24	14.68%
2	Morgan Stanley	6.046	36	16.58%	3	2.770	23	11.25%
3	Goldman Sachs	5.585	31	15.32%	4	2.263	13	9.19%
4	Bank of America	5.214	28	14.30%	2	3.064	26	12.44%
5	Citigroup	2.148	13	5.89%	7	1.371	13	5.57%
6	Wells Fargo	1.785	12	4.90%	5	2.181	13	8.86%
7	Barclays	1.678	11	4.60%	6	1.613	14	6.55%
8	Deutsche Bank	1.322	9	3.63%	17	0.335	5	1.36%
9	RBC	1.117	8	3.06%	8	0.954	8	3.87%
10	Credit Suisse	0.997	8	2.74%	10	0.898	8	3.65%
	Total	36.458	112	24.629	67
	Average size	0.326	0.368
U.S. market, July
					2017 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Citigroup	0.929	2	30.69%
1	Wells Fargo	0.929	2	30.69%
3	Goldman Sachs	0.245	3	8.10%
4	Credit Suisse	0.168	2	5.56%
5	JPMorgan	0.147	2	4.86%	1	0.430	2	23.13%
6	Bank of America	0.130	2	4.30%	1	0.430	2	23.13%
7	Jefferies	0.115	1	3.80%
8	SunTrust	0.086	1	2.85%
9	Deutsche Bank	0.082	1	2.71%
10	JMP	0.065	1	2.15%
	Total	3.026	9	1.859	3
	Average size	0.336	0.620
Global, year to date
					2017 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	8.733	51	15.25%	1	5.072	32	12.69%
2	Goldman Sachs	8.145	36	14.22%	3	3.083	17	7.71%
3	Morgan Stanley	6.746	41	11.78%	2	4.203	30	10.51%
4	Bank of America	5.855	32	10.22%	4	3.064	26	7.66%
5	Citigroup	3.509	19	6.12%	8	1.865	17	4.67%
6	UBS	2.744	7	4.79%	17	0.589	7	1.47%
7	Deutsche Bank	2.408	15	4.20%	13	1.038	11	2.60%
8	Barclays	1.872	13	3.27%	5	2.206	15	5.52%
9	Wells Fargo	1.785	12	3.12%	6	2.181	13	5.45%
10	Credit Suisse	1.705	12	2.98%	10	1.252	11	3.13%
	Total	57.284	172	39.986	118
	Average size	0.333	0.339
Global, July
					2017 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Citigroup	0.929	2	27.35%
1	Wells Fargo	0.929	2	27.35%
3	JPMorgan	0.497	3	14.64%	4	0.430	2	8.14%
4	Goldman Sachs	0.245	3	7.22%	10	0.171	1	3.24%
5	Credit Suisse	0.168	2	4.96%	12	0.090	1	1.70%
6	Bank of America	0.130	2	3.83%	3	0.430	2	8.14%
7	Jefferies	0.115	1	3.39%
8	SunTrust	0.086	1	2.54%
9	Deutsche Bank	0.082	1	2.42%	9	0.171	1	3.24%
10	JMP	0.065	1	1.91%
	Total	3.395	11	5.284	10
	Average size	0.309	0.528
Prospect News Convertibles Underwriter Rankings

Criteria

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

• 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 (or lead manager if no bookrunners). For multiple bookrunners (or lead managers), the total value is divided equally among all the firms.

• Each tranche is counted as a separate deal.

• Bonds are included that convert into the issuer’s or another company’s stock or the cash equivalent; bonds that convert into other bonds are excluded.

• Preferred issues are included using the same criteria as for bonds.

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