Thomson Reuters Releases Second Quarter 2010 Global Investment Banking Review
Strongest First Half of Year for Global M&A Since 2008 and IPOs Since 2007
London, New York, 7 July 2010 - Thomson Reuters has released the final second
quarter 2010 global reviews for mergers and acquisitions and capital markets
The value of global mergers & acquisitions (M&A) reached US$1.1tr during the
first half of 2010, an increase of 9% over last year, the strongest opening six
month period for M&A since 2008. Emerging Markets M&A accounted for 32% of
global M&A volume, up from 19% last year. The Energy & Power sector proved the
most active, taking 19% of announced M&A. Private equity backed M&A totaled
US$73.4bn, the largest opening period since the first half of 2008. Goldman
Sachs tops the global M&A rankings with $213.4bn in deals advised.
Equity capital markets (ECM) activity totaled US$314.5bn globally during the
first half of 2010, marking a 7% decrease from the first half of 2009.
Follow-ons registered their slowest start to the year since 2005, with a
year-to-date value of US$185.1bn. IPOs, however, saw their strongest opening
half year since 2007, as global volumes reached US$93.9bn. Emerging market
issuers accounted for 52% of IPO volumes, with new listings from Chinese
companies accounting for 36%. JP Morgan led global equity underwriters for the
second consecutive half year, with US$25.9bn in proceeds from 160 issues.
Overall debt capital markets (DCM) activity fell 23% to US$2.6tr compared to the
first half of last year. However, the volume of corporate high yield debt
reached US$130.7bn, breaking all records for semi-annual corporate high yield
debt issuance. Government Guarantee programs raised US$23.3bn during Q2 2010 to
mark the slowest quarter for government guaranteed debt since programs began in
2008. Securitizations saw double-digit percentage gains, as new issuance of
asset-backed and mortgage-backed securitizations reached $255.7bn and $93.1bn,
respectively. Securitizations from US government sponsored enterprises
accounted for nearly 50% of total activity during the first half. Barclays
Capital took the top spot for global debt underwriting, with 8.2% of the market
in the first half of 2010.
Global investment banking fees year to date reached US$36.5bn* up from US$34.1bn
compared to the first half of 2009. However Q2 2010 marks the lowest level of
quarterly activity since Q1 2009. M&A fees drove the overall investment banking
fee pool in the second quarter with 39% - the highest market share that M&A has
held since the fourth quarter of 2008 and the first time in three quarters that
M&A has generated the highest percentage of investment banking fees.
"The instability in the Eurozone and volatility in equity offerings over the
past quarter created a challenging environment for new capital markets issues.
M&A in the mature markets was choppy as the optimism of the first quarter was
blunted by funding constraints in the capital markets, lukewarm confidence
around macro-economic prospects in addition to the well publicized regulatory
overhang. However, strong activity in emerging markets and cross border M&A
combined with something of a resurgence in financial sponsor activity resulted
in M&A re-emerging as the biggest fee driver yet again for investment banks,"
said Neil Masterson, Global Head of Investment Banking at Thomson Reuters.
The full reviews are available at theThomson Reuters Deals Intelligence website.
Notes to Editors:
* Source: Thomson Reuters/Freeman Consulting
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Clare Arber Jeanette Volpi
Public Relations, EMEA Public Relations, US
Thomson Reuters Thomson Reuters
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