JPMorgan top U.S. market convertibles underwriter year to date

• U.S. convertibles issuance totals $39.76 billion for year to date

• November U.S. convertibles issuance totals $7.97 billion in 12 deals

By Rebecca Melvin

New York, Nov. 30 - J.P. Morgan Securities Inc. remained the top convertibles underwriter for the year to date through November, bringing $7.64 billion in new issuance in 36 deals, accounting for 19% of total issuance, according to data compiled by Prospect News.

Morgan Stanley was the No. 2 convertibles underwriter for the year to date, with $5.66 billion of new issuance in 18 deals, accounting for 14% of the total.

Bank of America holds the third slot with $4.90 billion of new issuance in 27 deals, accounting for 12% of total issuance.

Total U.S. convertibles issuance for the year to date stands at $39.76 billion in 87 deals, which is higher compared to $35.05 billion in 108 deals for the same period of 2009.

For November alone, there was $7.97 billion of U.S. convertibles issuance in 12 deals, with the average deal size standing at $664 million each.

Accounting for the lion's share of issuance was a single $4.35 billion deal from General Motors Co. for three-year mandatory preferreds to yield 4.75%, which priced Nov. 17.

JPMorgan resumed its top position for the month, unseating Morgan Stanley as the top convertibles underwriter for November alone, and bringing $1.27 billion in new issuance in five deals this past month, accounting for 16% of issuance.

Morgan Stanley was a close second with just a hair less than JPMorgan, or with $1.21 billion in four deals accounting for 15.2% of the total.

Citigroup took the No. 3 spot for November with $911 million of new issuance in three deals, accounting for 11.4% of the total.

November's total is higher compared to October when $4.11 billion of new issuance in eight deals priced.

After GM, new deal issuance slackened, although there was decent flow in the first two weeks of the month.

Notable was Stanley Black & Decker's $550 million of convertible preferred units to yield 4.75% that priced Nov. 2; Lennar Corp.'s upsized $435 million of 10-year convertibles to yield 2.75% on Nov. 5; and Developers Diversified Realty Corp.'s $305 million of 30-year convertibles at 1.75% on Nov. 2.

Year to date, U.S. market

2009 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	7.638	36	19.21%	1	7.443	48	21.23%
2	Morgan Stanley	5.655	18	14.22%	3	3.956	26	11.29%
3	Bank of America	4.902	27	12.33%	8	1.753	16	5.00%
4	Goldman Sachs	4.179	14	10.51%	2	4.745	23	13.54%
5	Citigroup	3.585	15	9.02%	4	3.715	25	10.60%
6	Deutsche Bank	2.503	14	6.29%	6	2.688	15	7.67%
7	Credit Suisse	2.305	12	5.80%	5	2.707	17	7.72%
8	UBS	1.758	12	4.42%	12	0.383	3	1.09%
9	Barclays	1.707	8	4.29%	9	1.702	12	4.86%
10	Jefferies	1.423	5	3.58%	11	0.547	4	1.56%
	Total	39.763	87	35.053	108
	Average size:	0.457	0.325
Year to date, global
					2009 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	10.512	53	13.52%	1	10.427	62	13.47%
2	Morgan Stanley	8.977	30	11.55%	2	8.058	43	10.41%
3	Bank of America	5.901	32	7.59%	13	2.081	19	2.69%
4	Goldman Sachs	5.462	20	7.02%	3	7.342	34	9.48%
5	None/Unknown	5.114	11	6.58%	8	3.258	10	4.21%
6	Citigroup	5.100	26	6.56%	5	5.156	35	6.66%
7	Credit Suisse	4.306	24	5.54%	4	6.203	32	8.01%
8	Deutsche Bank	3.415	21	4.39%	6	4.732	29	6.11%
9	Barclays	2.776	14	3.57%	10	3.136	22	4.05%
10	UBS	2.435	19	3.13%	14	1.562	12	2.02%
	Total	77.746	221	77.416	240
	Average size:	0.352	0.323
November, U.S. market
					2009 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	1.273	5	15.97%	4	0.503	3	9.19%
2	Morgan Stanley	1.213	4	15.22%	5	0.395	3	7.21%
3	Citigroup	0.911	3	11.42%	8	0.287	1	5.25%
4	Bank of America	0.808	4	10.14%	3	0.661	5	12.07%
5	Deutsche Bank	0.793	3	9.95%	2	0.748	2	13.65%
6	Credit Suisse	0.731	2	9.17%
7	Goldman Sachs	0.643	2	8.07%	1	1.222	2	22.33%
8	RBC	0.556	1	6.97%
9	Barclays	0.556	1	6.97%	6	0.338	2	6.16%
10	UBS	0.155	2	1.94%	11	0.172	1	3.15%
	Total	7.970	12	5.475	12
	Average size:	0.664	0.456
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.

• Structured products 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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