Structured products volume climbs by more than 200% week over week; smaller deals still dominate

By Sheri Kasprzak

New York, Oct. 30 - Structured products issuance climbed by 200% week over week, according to data compiled by Prospect News.

For the week of Oct. 20, there were 150 deals totaling $1.66 billion, up from $552 million in 129 deals completed during the week of Oct. 13.

Excluding exchange-traded notes, issuance climbed by 241.5%, with $1.54 billion in 137 deals completed, up from $452 million in 117 deals the week of Oct. 13.

Once again, smaller deals were the most common size. There were 25 deals over $10 million, up from 12 the previous week, with 18 deals larger than $20 million, compared with four the prior week. The week of Oct. 20 did see five deals over $50 million with no deals of that size reported for the previous week.

Among the deals over $50 million were a $229,765,100 offering of market-linked step-up notes linked to the Euro Stoxx 50 from Bank of America Corp., which priced Oct. 24.

Additionally, Royal Bank of Canada priced $72,866,310,000 of accelerated return notes, also linked to the Euro Stoxx 50 index. Those notes also priced Oct. 24.

BofA top bookrunner

Moving to the top bookrunners for the week, BofA Merrill Lynch topped this list with 13 deals totaling $595 million, making up 38.57% of the week's issuance. The bookrunner offered no deals the previous week.

UBS AG took the number-two spot with 59 offerings totaling $486 million, or 31.5% of the week's total issuance. The bookrunner's offerings increased 492.6% week over week. The week before, the bookrunner offered 57 deals totaling $82 million.

Merrill Lynch & Co. was the number-three bookrunner for the week, pricing $271 million in nine deals. The bookrunner also offered no deals the previous week.

$3.29 billion sold in October

Moving to monthly numbers, between Oct. 1 and Oct. 26, there were 538 deals priced totaling $3.3 billion. The numbers for Sept. 1 through Sept. 26 totaled $3 billion in 636, representing a 9.35% for October so far.

The total year-ago month-to-date numbers were $3.4 billion in 700 deals, a 2.34% drop.

For the month so far, 62 offerings have totaled $10 million or more compared with 72 deals in the previous month-to-date period. Twenty-nine offerings have totaled $20 million or more, compared with 26 deals in the previous month-to-date period. Five offerings this month were over $50 million compared with eight in the previous month-to-date period.

$43.48 billion tally for year

Looking to yearly totals, between Jan. 1, 2013 and Oct. 26, 2013, there have been 7,277 deals totaling $43.5 billion, down 12.35% from the previous year-to-date period in 2012, during which time there were 7,225 deals totaling $49.6 billion.

Excluding exchange-traded notes, there have been 6,520 deals totaling $31.7 billion, up 4.84% from the previous year-to-date period during which there were 6,753 deals totaling $30.2 billion.

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