Morgan Stanley top convertibles underwriter year to date

* Convertibles issuance totals $36.97 billion year to date

* Goldman top convertibles underwriter in August

* Convertibles issuance $3.36 billion in August

New York, Aug. 31 - Morgan Stanley held on to its title of number one underwriter of convertible bonds so far this year, a position it has held since March, according to data compiled by Prospect News.

Meanwhile Goldman, Sachs & Co. was the top convertible underwriter for August.

New issue volume improved to $3.36 billion from July's remarkably low $1.04 billion but still remains well down from year-ago levels.

The latest month's figure was only 82% of the $4.09 billion in August 2003 and the year-to-date total of $36.97 billion is a mere 48% of the amount at the same point of last year.

Making a big contribution to the August data was Schering-Plough Corp.'s offering of $1.4375 billion in mandatory convertible preferred stock.

That deal made up more than 40% of the month's total volume, and the three bookrunners - Goldman Sachs, Banc of America Securities LLC and Citigroup - accounted for the top three places in the underwriter league tables for August.

The Prospect News figures cover dollar-denominated deals offered in the United States as registered transactions or under Rule 144A.

The trend is similar if investment bank equity-linked deals are excluded.

On this basis, August saw $3.16 billion of deals compared to the $3.96 billion in August 2003.

Year-to-date issuance is $34.51 billion versus $73.55 billion for the same period of 2003.

Year to date 2004. including investment bank exchangeables

2003 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Morgan Stanley	6.041	46	16.34%	4	9.307	50	12.13%
2	Citigroup	4.927	32	13.33%	1	11.579	55	15.09%
3	Goldman Sachs	4.086	47	11.05%	3	9.621	58	12.54%
4	Banc of America	3.843	19	10.40%	6	6.456	33	8.42%
5	Lehman	3.516	21	9.51%	10	3.455	21	4.50%
6	Merrill Lynch	2.702	22	7.31%	5	7.971	45	10.39%
7	JPMorgan	2.647	21	7.16%	2	10.508	39	13.70%
8	Deutsche Bank	2.200	12	5.95%	9	3.854	21	5.02%
9	CSFB	2.191	12	5.93%	8	4.839	25	6.31%
10	UBS	2.030	8	5.49%	7	5.658	28	7.38%
	Total	36.973	267	76.715	287
	Average size:	0.138	0.267
August 2004, including investment bank exchangeables
					2003 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	1.013	7	30.20%	4	0.456	4	11.16%
2	Banc of America	0.679	2	20.24%	3	0.627	5	15.33%
3	Citigroup	0.525	3	15.63%	2	0.875	5	21.40%
4	Lehman	0.477	3	14.23%	9	0.090	1	2.20%
5	Morgan Stanley	0.269	5	8.01%	5	0.307	4	7.50%
6	UBS	0.125	1	3.72%	7	0.235	6	5.74%
7	JPMorgan	0.120	1	3.58%	1	0.922	5	22.54%
8	Thomas Weisel	0.070	1	2.09%	-	-	-	-
9	First Taiwan	0.030	1	0.89%	-	-	-	-
10	Bear Stearns	0.028	1	0.82%	-	-	-	-
	Total	3.356	26	4.089	27
	Average size:	0.129	0.151
Year to date 2004. excluding investment bank exchangeables
					2003 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Morgan Stanley	5.634	26	16.33%	4	9.025	42	12.27%
2	Banc of America	3.843	19	11.14%	6	6.456	33	8.78%
3	Citigroup	3.835	20	11.11%	1	11.059	47	15.04%
4	Goldman Sachs	3.803	17	11.02%	3	9.160	32	12.45%
5	Lehman	3.336	12	9.67%	9	3.169	15	4.31%
6	JPMorgan	2.647	21	7.67%	2	10.508	39	14.29%
7	Merrill Lynch	2.407	14	6.97%	5	7.709	36	10.48%
8	Deutsche Bank	2.200	12	6.38%	10	2.634	19	3.58%
9	CSFB	2.191	12	6.35%	8	4.839	25	6.58%
10	UBS	2.030	8	5.88%	7	5.640	24	7.67%
	Total	34.509	140	73.549	212
	Average size:	0.246	0.347
August 2004, excluding investment bank exchangeables
					2003 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	0.982	3	31.05%	4	0.433	2	10.95%
2	Banc of America	0.679	2	21.47%	3	0.627	5	15.83%
3	Citigroup	0.507	2	16.02%	2	0.875	5	22.11%
4	Lehman	0.465	2	14.70%	9	0.090	1	2.27%
5	Morgan Stanley	0.158	1	5.00%	6	0.263	3	6.65%
6	UBS	0.125	1	3.95%	7	0.216	2	5.45%
7	JPMorgan	0.120	1	3.79%	1	0.922	5	23.29%
8	Thomas Weisel	0.070	1	2.21%	-	-	-	-
9	First Taiwan	0.030	1	0.95%	-	-	-	-
10	Bear Stearns	0.028	1	0.87%	-	-	-	-
	Total	3.164	10	3.958	16
	Average size:	0.316	0.247
Prospect News Convertibles Underwriter Rankings

Criteria

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

* 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.

* Units made up of a bond and stock are included; units made up of a bond and warrants are excluded.

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

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