Published on 1/31/2014 in the Prospect News Structured Products Daily.
Volume down 30.5% year to date, but caution remains 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
|
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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.
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