Thursday May 28, 05:55 PM
U.S. May equity issuance hits record $49 bln
LONDON, May 28 (Reuters) - Robust capital-raising among U.S. banks sent equity capital markets issuance in the Americas to an all-time high in May, according to Thomson Reuters (TRI.TO - news) data.
Top U.S. banks, including Wells Fargo & Co and Morgan Stanley (NYSE: MS - news) , rushed to tap the equity market after the government's bank stress tests.
That helped send U.S. equity capital markets volume to $48.8 billion, even without $13.5 billion raised by Bank of America (NYSE: IKJ - news) , which was through an at the market (ATM) offering and is excluded from the data.
It was the highest monthly volume ever in the U.S. and the largest volume in any region since June 2000.
Global equity issuance volume in secondary markets in May reached $65.9 billion, the fourth-largest ever and not far from the record of $67.2 billion set in May 2008.
Although follow-on issuances from other sectors picked up, the financial sector still accounted for about half of the total secondary equity issuance volume.
With the U.S. stress tests fuelling hopes that the worst is over for the financial sector, investment-grade debt from banking issuers amounted to $49.9 billion in May. That exceeded guaranteed debt, at $45.9 billion, for the first time since the inception of government-backed debt programmes.
Global initial public offering (IPO) volumes remained low, however, with just $5 billion raised in the first five months, a 92 percent drop from the same period in 2008.
The following are the global top 5 ECM issues in May 2009, based on the Thomson Reuters data (which excludes Bank of America $13.5 billion equity raising):
Issuer Country Date Amount ($bln)
Wells Fargo U.S. May 8 8.6
Snam Rete Gas Italy May 15 4.7
Morgan Stanley U.S. May 8 4.6
US Bancorp U.S. May 11 2.8
State Street U.S. May 18 2.3
(Reporting by Daisy Ku; Editing by Rupert Winchester) Keywords: EQUITIES/ISSUANCE RECORD
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