BofA Merrill continues sluggish start to year

IFR 2022 1 March to 7 March 2014
7 min read
Americas, EMEA, Asia
Spencer Anderson

Bank of America Merrill Lynch lost more ground to its rivals in the investment banking space in February, falling to fourth in terms of fees earned from global bonds, equities, loans and advisory – down from third in January and second for most of last year.

JP Morgan once again claimed top spot, earning US$791.9m in the first few weeks of the year for 7.7% of the total pot. The lender topped the global bond and loans league tables, and was boosted by deals including being lead books on a US$1.6bn dual-tranche convertible financing for Tesla Motors.

The lender also kept top spot despite missing out on one of February’s biggest deals, Google’s US$1bn 10-year bond deal, which was led by BofA Merrill, Goldman Sachs and Morgan Stanley.

Goldman Sachs and Morgan Stanley saw their market share grow from a year ago, with the latter displacing larger rival BofA Merrill. Morgan Stanley’s surge up the chart comes after solid results in equities and Asian investment banking, where it has been on top since the start of the year.

It was also a better month in general for the industry, with the number of issues at 4,192 up by 30% in February from the previous month and fees of US$10.3bn, up 9%. However, the pace of dealmaking so far this year is still well behind that in early 2013. So far this year fees are down by 21.4% on 2013.

Although BofA Merrill will be disappointed with its share of the fees, it nevertheless has the second-highest number of issues so far this year, and was on one of the month’s largest deals, a US$7bn equity financing package for Actavis.

While the month recorded some solid overall growth in global fees, it was relatively flat for most categories apart from Asian investment banking and global loans. In Asia fees fell 48% compared with January. However, in global loans the month was an absolute bonanza. After only US$379.4m in fees in January, February produced US$1.29bn, a hefty increase of 240%.

Global investment banking fees: February 2014
Global investment banking fees: February 2014
ManagingNo ofTotalShare
bank or groupissuesUS$(m)(%)
​ 1JP Morgan498791.97.7
2Goldman Sachs327774.97.5
3Morgan Stanley422675.66.5
4BofA Merrill Lynch4456696.5
5Barclays372511.75
6Citigroup370507.44.9
7Credit Suisse310505.74.9
8Deutsche Bank419490.74.8
9UBS195291.92.8
10RBC CM292232.62.3
11HSBC407200.11.9
12Wells Fargo & Co224189.91.8
13Jefferies95189.51.8
14BNP Paribas2561821.8
15Nomura221177.71.7
16Lazard34152.21.5
17BMO CM164129.11.3
18Mizuho Financial2731251.2
19RBS219121.71.2
20Credit Agricole CIB165117.61.1
Total​4,19210,321.70
Americas investment banking: February 2014
Americas investment banking: February 2014
ManagingNo ofTotalShare
bank or groupissuesUS$(m)(%)
1JP Morgan325604.110.5
2BofA Merrill Lynch302494.78.6
3Goldman Sachs1514918.5
4Morgan Stanley1704127.2
5Credit Suisse164367.36.4
6Barclays183332.55.8
7Citigroup198315.65.5
8Deutsche Bank198290.15
9RBC CM230190.43.3
10Wells Fargo & Co219185.33.2
Total​1,6955,745.20
Asia-pacific & Japan investment banking: February 2014
Asia-pacific & Japan investment banking: February 2014
ManagingNo ofTotalShare
bank or groupissuesUS$(m)(%)
1Morgan Stanley172139.47.7
2Nomura139110.96.1
3Mizuho Financial20489.44.9
4UBS5789.34.9
5Goldman Sachs82794.4
6Citigroup7562.43.5
7BofA Merrill Lynch6660.13.3
8Sumitomo Mitsui189573.2
9HSBC13353.12.9
10GF Securities1043.42.4
Total​1,3511,807.50
EMEA investment banking: February 2014
EMEA investment banking: February 2014
ManagingNo ofTotalShare
bank or groupissuesUS$(m)(%)
1Goldman Sachs97204.97.4
2Deutsche Bank152172.16.2
3JP Morgan132158.75.7
4Barclays137148.55.4
5Citigroup100129.44.7
6Morgan Stanley83124.34.5
7BofA Merrill Lynch78114.24.1
8BNP Paribas1411124
9Credit Suisse100101.43.7
10HSBC15798.33.6
Total​1,2212,769.00
Global bonds: February 2014
Global bonds: February 2014
ManagingNo ofTotalShare
bank or groupissuesUS$(m)(%)
1JP Morgan271246.17.9
2BofA Merrill Lynch248233.47.5
3Citigroup232205.66.6
4Morgan Stanley287184.85.9
5Deutsche Bank285174.95.6
6Goldman Sachs199169.65.4
7Barclays233167.75.4
8Credit Suisse173155.75
9HSBC313117.93.8
10BNP Paribas195103.73.3
Total​2,2363,120.80
Global equity: February 2014
Global equity: February 2014
ManagingNo ofTotalShare
bank or groupissuesUS$(m)(%)
1Morgan Stanley61195.57
2Citigroup501525.4
3JP Morgan57139.85
4Goldman Sachs34139.15
5BofA Merrill Lynch51134.64.8
6Deutsche Bank44128.54.6
7Credit Suisse51104.23.7
8Barclays4191.23.3
9UBS4179.32.8
10Nomura2878.72.8
Total​7512,790.30
Global loans: February 2014
Global loans: February 2014
ManagingNo ofTotalShare
bank or groupissuesUS$(m)(%)
1JP Morgan137164.19.8
2BofA Merrill Lynch1151358.1
3Credit Suisse58107.46.4
4Deutsche Bank6892.85.5
5Goldman Sachs4290.65.4
6Wells Fargo & Co7871.24.3
7Barclays7269.84.2
8Citigroup70694.1
9Morgan Stanley3666.64
10UBS2851.43.1
Total​6211,671.80