May slowdown hits Goldman, boosts Deutsche

IFR 2035 31 May to 6 June 2014
6 min read
Americas, EMEA, Asia
Gareth Gore

Global investment banking activity slowed slightly in May following a bumper April, with range-bound stock markets and a handful of failed deals putting a damper on equity issuance – although debt issuance continued to be strong against the backdrop of falling yields.

Banks earned US$7.9bn from bond, loan and equity deals during the month, down on the US$9bn they earned in April. That was a result of fewer deals coming to market, with just 3,245 issues globally compared with 4,146 the previous month.

JP Morgan, Goldman Sachs and Bank of America Merrill Lynch, the top three banks in terms of global fees earned, all lost market share during May. But it was Goldman that was worst affected, with its share of the pot falling 60bp to 6.6%. It slipped from second to sixth in the bond fees table.

The bank has missed out on some chunky bond issues from European banks, including Danske Bank, Rabobank and UBS. Banks in the region have been keen to tap into falling yields ahead of stress tests due later this year, which could reveal fresh capital holes.

Deutsche Bank and Barclays, which have both been under intense scrutiny in recent weeks over their strategy in trading and investment banking, were two unexpected winners in May. Both gained a place in the global fee tables, with Deutsche climbing from sixth to third in bonds.

Both firms were on Spain’s inaugural eurozone inflation-linked bond transaction, a blow-out deal that attracted a €20bn for the €5bn of bonds on offer. Deutsche also led its own €3.5bn issue of contingent capital bonds, as part of efforts to boost its languishing capital and leverage ratios.

There were few changes elsewhere. JP Morgan continued to dominate fees in bonds, loans, the Americas and Europe, Middle East and Africa. Morgan Stanley topped the Asia-Pacific and equity league tables.

Global investment banking fees: May 2014
Global investment banking fees
Managing bank or groupNo of issuesTotal US$(m)Share (%)
1JP Morgan1,7932,673.507.5
2Goldman Sachs1,0942,335.406.6
3BofA Merrill Lynch1,6062,199.006.2
4Morgan Stanley1,3512,179.006.1
5Deutsche Bank1,4221,734.104.9
6Citigroup1,3021,668.304.7
7Barclays1,2411,610.804.5
8Credit Suisse9901,558.704.4
9UBS636946.52.7
10RBC CM1,0279072.6
11Wells Fargo & Co1,018810.82.3
12HSBC1,366720.72
13BNP Paribas846653.51.8
14Jefferies LLC318560.11.6
15Nomura664543.51.5
16RBS798447.11.3
17Mizuho Financial1,090437.71.2
18Sumitomo Mitsui1,036404.71.1
19Credit Agricole CIB546403.31.1
20BMO CM589373.11.1
Total​15,68335,497.40
Americas investment banking: May 2014
Americas investment banking
Managing bank or groupNo of issuesTotal US$(m)Share (%)
1JP Morgan1,2301,859.509.5
2BofA Merrill Lynch1,1521,615.108.3
3Goldman Sachs5911,463.907.5
4Morgan Stanley6671,330.906.8
5Citigroup7711,124.005.8
6Barclays6801,044.705.4
7Credit Suisse5741,032.505.3
8Deutsche Bank683988.35.1
9RBC CM830774.44
10Wells Fargo & Co955762.13.9
Total​6,50219,505.00
Asia-Pacific & Japan investment banking: May 2014
Asia-Pacific & Japan investment banking
Managing bank or groupNo of issuesTotal US$(m)Share (%)
1Morgan Stanley447374.86.4
2Nomura419340.35.8
3Mizuho Financial802307.35.2
4Sumitomo Mitsui776270.84.6
5Goldman Sachs230255.24.4
6UBS141210.33.6
7BofA Merrill Lynch212194.13.3
8Citigroup2301652.8
9HSBC486164.22.8
10Daiwa Securities Grp3461432.4
Total​5,2915,865.60
EMEA investment banking: May 2014
EMEA investment banking
Managing bank or groupNo of issuesTotal US$(m)Share (%)
1JP Morgan443687.96.8
2Deutsche Bank521617.16.1
3Goldman Sachs289616.36.1
4Barclays422478.64.7
5Morgan Stanley250473.44.7
6BNP Paribas456429.84.2
7Credit Suisse280395.53.9
8BofA Merrill Lynch258389.93.8
9Citigroup315379.33.7
10HSBC496376.93.7
Total​4,12910,126.90
Global bonds: May 2014
Global bonds
Managing bank or groupNo of issuesTotal US$(m)Share (%)
1JP Morgan821761.97.5
2Morgan Stanley883627.16.2
3Deutsche Bank887620.36.1
4BofA Merrill Lynch758620.16.1
5Citigroup742603.76
6Goldman Sachs589570.75.7
7Barclays729515.45.1
8Credit Suisse533455.34.5
9HSBC971360.23.6
10Wells Fargo & Co475316.43.1
Total​7,52710,101.10
Global equity: May 2014
Global equity
Managing bank or groupNo of issuesTotal US$(m)Share (%)
1Morgan Stanley205709.17.6
2Goldman Sachs172649.17
3JP Morgan2005886.3
4BofA Merrill Lynch185506.95.5
5Citigroup150391.54.2
6Deutsche Bank152390.24.2
7Credit Suisse169388.14.2
8UBS150342.93.7
9Barclays132311.63.4
10Nomura82238.62.6
Total​2,2849,277.10
Global loans: May 2014
Global loans
Managing bank or groupNo of issuesTotal US$(m)Share (%)
1JP Morgan668721.18.7
2BofA Merrill Lynch583635.57.6
3Deutsche Bank326481.75.8
4Barclays307415.15
5Credit Suisse216408.44.9
6Citigroup342361.34.3
7Morgan Stanley164347.24.2
8Goldman Sachs186303.83.7
9Wells Fargo & Co4272903.5
10RBC CM229254.63.1
Total​3,5448,323.40
Fees
Global Investment Banking Fees