http://www.bloomberg.com/news/2014-07-03/battle-to-arrange-asia-s-record-bond-sales-closest-since-2009.html
Competition to underwrite record bond sales in Asia is the most intense in five years as more banks seek business in the world’s fastest-growing regional economy.
The gap between this year’s first- and second-ranked arrangers of notes denominated in dollars, euros or yen has narrowed to 1.4 percentage points, the least since 0.9 in the same period of 2009, Bloomberg-compiled data show. HSBC Holdings Plc leads with 12.5 percent, followed by Citigroup Inc. at 11.1 percent. The number of underwriters jumped to 55 from 47.
Borrowers in Asia sold a record $107.7 billion-equivalent of notes in the first half, as the region’s economy is set to lead global growth with a 6.18 percent expansion in 2014, according to the median estimate of economists surveyed by Bloomberg. Offerings for all of 2014 may reach a record for a fourth year, exceeding the $137 billion total in 2013, the top five arrangers said.
“Volumes are going up and absolute revenue continues to increase even if the percentage fee on each deal varies,” said Mark Follett, the Hong Kong-based head of high-grade debt capital markets for Asia ex-Japan at JPMorgan Chase & Co, which for 2014 is in third place with 8.4 percent. “The bond market is a highly visible business and many banks see it as a critical part of their investment banking footprint in Asia.”
Fee Competition
Issuance in the first half jumped 26 percent from the previous high last year, according to data compiled by Bloomberg. Some 32 borrowers sold dollar-denominated deals valued at a minimum $1 billion, more than double the same period in 2013.
Underwriting competition is also intensifying after fee income from arranging bond and equity sales, as well as advising on mergers and acquisitions, fell 23 percent in the region from 2011 to 2013, according to New York-based research firm Freeman & Co.
Competition to underwrite record bond sales in Asia is the most intense in five years as more banks seek business in the world’s fastest-growing regional economy.
The gap between this year’s first- and second-ranked arrangers of notes denominated in dollars, euros or yen has narrowed to 1.4 percentage points, the least since 0.9 in the same period of 2009, Bloomberg-compiled data show. HSBC Holdings Plc leads with 12.5 percent, followed by Citigroup Inc. at 11.1 percent. The number of underwriters jumped to 55 from 47.
Borrowers in Asia sold a record $107.7 billion-equivalent of notes in the first half, as the region’s economy is set to lead global growth with a 6.18 percent expansion in 2014, according to the median estimate of economists surveyed by Bloomberg. Offerings for all of 2014 may reach a record for a fourth year, exceeding the $137 billion total in 2013, the top five arrangers said.
“Volumes are going up and absolute revenue continues to increase even if the percentage fee on each deal varies,” said Mark Follett, the Hong Kong-based head of high-grade debt capital markets for Asia ex-Japan at JPMorgan Chase & Co, which for 2014 is in third place with 8.4 percent. “The bond market is a highly visible business and many banks see it as a critical part of their investment banking footprint in Asia.”
Fee Competition
Issuance in the first half jumped 26 percent from the previous high last year, according to data compiled by Bloomberg. Some 32 borrowers sold dollar-denominated deals valued at a minimum $1 billion, more than double the same period in 2013.
Underwriting competition is also intensifying after fee income from arranging bond and equity sales, as well as advising on mergers and acquisitions, fell 23 percent in the region from 2011 to 2013, according to New York-based research firm Freeman & Co.
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