Volume down 30.5% year to date, but caution required because Bank of America deals not all in

By Emma Trincal

New York, Jan. 31 - Structured products sales in January totaled $2.49 billion, a 30.5% decrease from last year's January sales of $3.58 billion, according to preliminary data compiled by Prospect News. The number of deals was relatively unchanged at 658 versus 672 last year.

However, caution is warranted in interpreting this data because Bank of America had still not reported most of its deals at press time, Friday afternoon. Given that this agent makes for about 30% of the total volume (28.95% last year) and is consistently the top seller, the fact that its latest deals were not yet appearing on the Securities and Exchange Commission website is sure to make a difference.

Skewed data

Bank of America brings to market its largest offerings during the last week of each month, further skewing the data, as those have not been filed yet but will be over the next few days.

As it is now, UBS with 313 deals totaling $507 million was the top agent and Bank of America, with only $100 million, the last. This picture is temporary. As soon as Bank of America's deals get filed, figures will be completely changed, sources said, noting that Bank of America had no reason to lose its top spot, which it has held unfailingly for months and even years.

Other agents had not finalized their filings either. But as of Friday, JPMorgan was next after UBS, with $426 million in 103 deals, followed by Goldman Sachs with $326 million in 41 offerings.

Those figures do not include exchange-traded notes. They also do not take into account interest rate products with a structured coupon but no underlier such as step-up or step-down notes, fixed-to-floating and capped floaters, which are listed separately under the name of "structured coupons."

Asset classes

Single-stock deals are already showing an increase in volume for this first month of the year, growing 8% to $830 million from $768 million in January 2013. Equity-index-linked notes are on the retreat, falling 56% to $861 million from $1.95 billion. Again, caution is mandatory: most Bank of America deals hitting the market at the end of the month consist of large equity-index notes offerings. Only final figures accounting for all the pricing of the biggest firms in January can establish the most visible asset class trends for this early part of the year.

The declining issuance volume seen in commodities appeared to continue. Sales in this asset class have dropped 53% so far this year to $109 million from $234 million, despite Barclays Bank plc's $60.98 million one-year deal linked to the price of palladium, which was issued on the first business day of the year.

Given the Federal Reserve's tapering and the market's uncertainty around the future direction of yields, rates-linked notes have been popular. Agents sold $233 million in this category, a nearly three-fold increase from $81 million sold at the same time last year, according to the data.

All structured products, no ETNS, by agent, year to date

2013 Comparables

	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	UBS	0.507	313	20.39%	4	0.338	199	9.43%
2	JPMorgan	0.426	103	17.12%	2	0.494	112	13.79%
3	Goldman Sachs	0.326	41	13.11%	5	0.299	35	8.35%
4	Barclays	0.263	37	10.59%	11	0.069	40	1.92%
5	Morgan Stanley	0.174	24	7.00%	3	0.464	42	12.96%
6	BMO	0.174	2	6.98%	7	0.100	14	2.80%
7	RBC	0.131	37	5.28%	9	0.083	51	2.33%
8	Citigroup	0.131	13	5.26%	8	0.095	15	2.66%
9	Credit Suisse	0.113	31	4.53%	12	0.051	27	1.43%
10	Bank of America	0.100	6	4.02%	1	1.291	45	36.08%
	Total	2.485	672	3.579	658
	Average size:	0.004	0.005
All structured products, by agent, year to date
					2013 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	UBS	0.832	315	23.91%	6	0.338	199	7.30%
2	Credit Suisse	0.716	102	20.58%	2	0.789	100	17.07%
3	JPMorgan	0.426	103	12.23%	3	0.494	112	10.68%
4	Goldman Sachs	0.326	41	9.37%	7	0.299	35	6.47%
5	Barclays	0.321	39	9.21%	5	0.348	42	7.52%
6	Morgan Stanley	0.174	24	5.00%	4	0.464	42	10.04%
7	BMO	0.174	2	4.99%	9	0.100	14	2.17%
8	RBC	0.131	37	3.77%	11	0.083	51	1.81%
9	Citigroup	0.131	13	3.76%	10	0.095	15	2.06%
10	Bank of America	0.100	6	2.87%	1	1.291	45	27.94%
	Total	3.479	749	4.622	744
	Average size:	0.005	0.006
ETNS, by agent, year to date
					2013 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Credit Suisse	0.603	71	60.74%	1	0.738	73	70.79%
2	UBS	0.325	2	32.72%
3	Barclays	0.057	2	5.78%	2	0.279	2	26.78%
4	Nuveen	0.008	2	0.76%	3	0.025	11	2.43%
	Total	0.993	77	1.042	86
	Average size:	0.013	0.012
Commodity structured products, no ETNS, by agent, year to date
					2013 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Barclays	0.061	1	56.18%
2	JPMorgan	0.039	4	35.63%	3	0.039	2	16.85%
3	UBS	0.005	1	4.19%	5	0.003	1	1.41%
4	Deutsche Bank	0.003	1	2.96%	2	0.076	6	32.55%
5	Morgan Stanley	0.001	1	1.04%
	Total	0.109	8	0.234	18
	Average size:	0.014	0.013
Equity index structured products, no ETNS, by agent, year to date
					2013 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs	0.219	34	25.42%	4	0.151	27	7.72%
2	JPMorgan	0.176	37	20.42%	3	0.202	35	10.31%
3	UBS	0.098	14	11.37%	6	0.049	5	2.53%
4	RBC	0.078	13	9.02%	11	0.017	7	0.89%
5	Credit Suisse	0.077	21	8.96%	8	0.030	16	1.54%
6	Bank of America	0.054	4	6.30%	1	0.998	29	51.08%
7	Morgan Stanley	0.053	11	6.11%	2	0.330	27	16.89%
8	Barclays	0.045	9	5.21%	10	0.022	9	1.10%
9	Citigroup	0.022	6	2.59%	7	0.035	5	1.78%
10	HSBC	0.022	30	2.55%	5	0.062	21	3.19%
	Total	0.861	184	1.954	202
	Average size:	0.005	0.010
Foreign exchange structured products, no ETNS, by agent, year to date
					2013 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan	0.027	5	100.00%	1	0.075	8	50.60%
	Total	0.027	5	0.148	20
	Average size:	0.005	0.007
Interest rate structured products, no ETNS, by agent, year to date
					2013 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Citigroup	0.100	2	42.96%
2	Barclays	0.045	2	19.33%
3	Scotia	0.045	1	19.33%
4	Goldman Sachs	0.033	4	14.09%	1	0.040	2	48.92%
5	Morgan Stanley	0.010	1	4.30%	3	0.015	1	18.44%
	Total	0.233	10	0.081	6
	Average size:	0.023	0.014
Single stock structured products, no ETNS, by agent, year to date
					2013 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	UBS	0.383	294	46.19%	1	0.231	179	30.04%
2	JPMorgan	0.102	36	12.31%	2	0.104	42	13.53%
3	Barclays	0.095	17	11.50%	8	0.027	25	3.58%
4	Morgan Stanley	0.089	8	10.68%	5	0.093	9	12.12%
5	Goldman Sachs	0.066	2	7.96%	4	0.101	4	13.13%
6	Bank of America	0.046	2	5.51%	3	0.103	3	13.36%
7	RBC	0.034	19	4.08%	6	0.057	41	7.45%
8	Credit Suisse	0.012	4	1.42%	10	0.002	1	0.26%
9	HSBC	0.002	1	0.26%	9	0.004	2	0.51%
10	Citigroup	0.000	2	0.05%	7	0.045	7	5.80%
11	Scotia	0.000	1	0.03%
	Total	0.830	386	0.768	315
	Average size:	0.002	0.002
Interest rate products with structured coupons (not included above), by agent, year to date
					2013 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	TD	0.250	1	8.14%	24	0.050	1	0.57%
2	Mizuho	0.225	3	7.32%	32	0.033	2	0.37%
3	RBC	0.224	11	7.28%	10	0.211	10	2.42%
4	Incapital	0.182	12	5.91%	4	0.352	15	4.04%
5	Hapoalim	0.175	8	5.70%	19	0.115	4	1.32%
6	Raymond James	0.161	11	5.24%	5	0.325	22	3.73%
7	First Tennessee	0.157	8	5.11%	2	0.975	24	11.19%
8	Stifel	0.140	11	4.57%	11	0.198	8	2.27%
9	Vining	0.125	11	4.06%	8	0.245	17	2.81%
10	Mesirow	0.117	7	3.82%	17	0.140	6	1.61%
	Total	3.072	127	8.715	258
	Average size:	0.024	0.034
Interest rate products with structured coupons (not included above), no agencies, by agent, year to date
					2013 Comparables
	Underwriter	Amount	No.	Share	Rank	Amount	No.	Share
1	Barclays	0.107	3	47.11%	3	0.086	7	12.74%
2	RBC	0.079	7	34.64%	2	0.166	7	24.68%
3	Scotia	0.023	3	9.94%
4	Goldman Sachs	0.014	2	6.17%	6	0.034	2	5.05%
5	JPMorgan	0.003	1	1.48%	7	0.015	4	2.22%
6	Nomura	0.002	1	0.66%
	Total	0.227	17	0.673	30
	Average size:	0.013	0.022
All structured products, no ETNs, by issuer, year to date
					2013 Comparables
	Issuer	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs Group, Inc.	0.428	48	17.23%	5	0.294	35	8.22%
2	JPMorgan Chase & Co.	0.322	87	12.94%	3	0.367	105	10.25%
3	Barclays Bank plc	0.320	47	12.87%	9	0.163	42	4.56%
4	UBS AG, London Branch	0.266	272	10.69%	10	0.146	161	4.07%
5	Royal Bank of Canada	0.187	44	7.54%	6	0.270	68	7.55%
6	Bank of Montreal	0.174	2	6.98%	11	0.100	14	2.80%
7	Morgan Stanley	0.169	23	6.80%	2	0.508	48	14.19%
8	Citigroup Inc.	0.148	17	5.94%	20	0.005	1	0.13%
9	Credit Suisse AG, London Branch	0.147	37	5.93%
10	Deutsche Bank AG, London Branch	0.136	24	5.47%	8	0.181	19	5.06%
	Total	2.485	672	3.579	658
	Average size:	0.004	0.005
All structured products, by issuer, year to date
					2013 Comparables
	Issuer	Amount	No.	Share	Rank	Amount	No.	Share
1	Credit Suisse AG, Nassau Branch	0.603	71	17.34%	1	1.005	112	21.74%
2	Goldman Sachs Group, Inc.	0.428	48	12.31%	7	0.294	35	6.37%
3	Barclays Bank plc	0.377	49	10.85%	4	0.442	44	9.57%
4	UBS AG, London Branch	0.341	273	9.80%	10	0.146	161	3.15%
5	JPMorgan Chase & Co.	0.322	87	9.25%	5	0.367	105	7.94%
6	UBS AG, Jersey Branch	0.250	1	7.19%	22	0.002	2	0.05%
7	Royal Bank of Canada	0.187	44	5.39%	8	0.270	68	5.84%
8	Bank of Montreal	0.174	2	4.99%	11	0.100	14	2.17%
9	Morgan Stanley	0.169	23	4.86%	3	0.508	48	10.99%
10	Citigroup Inc.	0.148	17	4.24%	20	0.005	1	0.10%
	Total	3.479	749	4.622	744
	Average size:	0.005	0.006
Commodity structured products, no ETNS, by issuer, year to date
					2013 Comparables
	Issuer	Amount	No.	Share	Rank	Amount	No.	Share
1	Barclays Bank plc	0.061	1	56.18%	5	0.015	1	6.31%
2	JPMorgan Chase & Co.	0.039	4	35.63%	3	0.039	2	16.85%
3	UBS AG, London Branch	0.005	1	4.19%	7	0.003	1	1.41%
4	Deutsche Bank AG, London Branch	0.003	1	2.96%	1	0.076	6	32.55%
5	Morgan Stanley	0.001	1	1.04%
	Total	0.109	8	0.234	18
	Average size:	0.014	0.013
Equity index structured products, no ETNS, by issuer, year to date
					2013 Comparables
	Issuer	Amount	No.	Share	Rank	Amount	No.	Share
1	Goldman Sachs Group, Inc.	0.311	40	36.06%	5	0.143	26	7.33%
2	Credit Suisse AG, London Branch	0.114	25	13.20%
3	Royal Bank of Canada	0.086	14	9.97%	8	0.058	9	2.97%
4	JPMorgan Chase & Co.	0.079	27	9.19%	6	0.103	24	5.28%
5	Barclays Bank plc	0.070	12	8.17%	7	0.060	7	3.05%
6	Morgan Stanley	0.053	11	6.11%	2	0.362	29	18.53%
7	UBS AG, London Branch	0.040	7	4.66%	12	0.030	4	1.53%
8	HSBC USA Inc.	0.037	32	4.26%	4	0.201	28	10.29%
9	Citigroup Inc.	0.022	6	2.59%
10	Bank of America Corp.	0.022	3	2.52%	1	0.556	15	28.46%
	Total	0.861	184	1.954	202
	Average size:	0.005	0.010
Foreign exchange structured products, no ETNS, by issuer, year to date
					2013 Comparables
	Issuer	Amount	No.	Share	Rank	Amount	No.	Share
1	JPMorgan Chase & Co.	0.027	5	100.00%
	Total	0.027	5	0.148	20
	Average size:	0.005	0.007
Interest rate structured products, no ETNS, by issuer, year to date
					2013 Comparables
	Issuer	Amount	No.	Share	Rank	Amount	No.	Share
1	Citigroup Inc.	0.100	2	42.96%
2	Bank of Nova Scotia	0.045	1	19.33%
3	Goldman Sachs Group, Inc.	0.033	4	14.09%	1	0.040	2	48.92%
4	Barclays Bank plc	0.025	1	10.74%
5	Federal Home Loan Banks	0.020	1	8.59%
6	Morgan Stanley	0.010	1	4.30%	3	0.015	1	18.44%
	Total	0.233	10	0.081	6
	Average size:	0.023	0.014
Single stock structured products, no ETNS, by issuer, year to date
					2013 Comparables
	Issuer	Amount	No.	Share	Rank	Amount	No.	Share
1	UBS AG, London Branch	0.208	261	25.13%	5	0.079	147	10.28%
2	Barclays Bank plc	0.150	26	18.03%	8	0.033	25	4.26%
3	Deutsche Bank AG, London Branch	0.099	17	11.96%	6	0.047	5	6.14%
4	Morgan Stanley	0.089	8	10.68%	3	0.101	12	13.15%
5	JPMorgan Chase & Co.	0.087	30	10.53%	2	0.150	54	19.57%
6	Royal Bank of Canada	0.082	25	9.87%	1	0.202	55	26.32%
7	Goldman Sachs Group, Inc.	0.077	3	9.26%	4	0.101	4	13.13%
8	Citigroup Inc.	0.017	6	2.08%	9	0.005	1	0.61%
9	HSBC USA Inc.	0.014	5	1.69%	11	0.004	2	0.51%
10	Credit Suisse AG, London Branch	0.006	4	0.76%
	Total	0.830	386	0.768	315
	Average size:	0.002	0.002
Prospect News Structured Products Rankings

Criteria

• The tables include all dollar-denominated offerings sold in the United States as public, Rule 144A or similar 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 lead manager. For multiple managers, the total value is divided equally among all the firms.

• Each tranche is counted as a separate deal.

• Notes are included that convert into or are linked to one or more stocks, indexes, commodities, currencies, interest rates or other assets.

• Interest-rate products with a structured coupon but no underlier, such as step-up notes, step-down notes, fixed-to-floating notes and capped floaters, are listed separately; they are not included in overall totals. Agencies are included in this category.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.