Every quarter, Thomson
Reuters publishes data of syndicated loans granted by banks
worldwide. The company namely provides separate proceeds and fees
data by bookrunner and mandated arranger as well as the number of
deals.
The analysis of the Q4
2013 data shows that syndicated loan markets are on the rise again.
Bookrunner Proceeds
Industry Total
In 2013, total syndicated
loan proceeds have increased, in any quarter, by roughly 25 %.
Over the entire financial
year 2013, the major U.S. banks have increased their proceeds by 28
%. This evolution is even more spectacular for the leading European
banks whose syndicated loan proceeds have increased by 68 %. In
absolute terms, however, U.S. banks still generated almost 2/3 more
proceeds in 2013 than their European counterparts.
The proceeds of the three
major Japanese banks almost stagnated in 2012. Compared to 2012, they
have experienced only a slight increase by 1 %. This means that,
today, European players generate twice as much syndicated loan
proceeds than the big Japanese players.
Finally, the market for
bookrunners has slightly concentrated, as the proceeds of the top 25
banks have increased from 28 % in 2012 to 31 % in 2013.
Regional Players
In France, BNP Paribas
is, today, the clear market leader: It generates twice as many
proceeds as its rivals Crédit Agricole and Société Générale
together.
The picture is roughly
the same in the U.K., where Barclays earns almost twice the proceeds
earned by its competitors HSBC and RBS.
The bookrunner market in
Japan is more balanced: Mitsubishi UFJ (41 %), Mizuho (34 %), and
Sumitomo Mitsui (25 %) divide the proceeds among themselves.
In the U.S., the market
leaders are JP Morgan and Bank of America with 30 % and 27 % market
share, respectively.
Bookrunner Fees
Industry Total
Comparing 2012 with 2013
figures, total bookrunner fees have increased, in any quarter, by
roughly 25 %.
European banks have
experienced the most spectacular increase (45 %) of bookrunner fees
in 2013. The main U.S. and Japanese banks have increased their
bookrunner fees by 22 % and 24 % respectively.
However, the biggest
chunk of bookrunner fees still goes to the big U.S. players: They
generate 33 % of the industry total in 2013, whereas European and
Japanese banks generate 23 % and 8 % respectively.
As is the case for
bookrunner proceeds, the bookrunner fee market is slightly more
concentrated in 2013, compared to 2012: The share of the top 25 banks
increased from 37 % in 2012 to 42 % in 2013.
Regional Players
The clear market leader
in France is BNP Paribas. The bank generates twice as many bookrunner
fees as its rivals Crédit Agricole or Société Générale together.
The situation is
comparable to the U.K. where Barclays dominates the market and
generates slightly more than twice the fees generated by its closest
rivals HSBC or RBS.
The situation in Japan is
more balanced: In 2013, Mitsubishi UFJ holds 41 %, Mizuho 32 %, and
Sumitomo Mitsui 26 % market share.
In the U.S., the market
leaders are JP Morgan and Bank of America. They both have 26 % market
share in 2013.
Mandated Arranger
Proceeds
Industry total
In 2013, mandated
arranger proceeds have increased by 31 %. Big U.S. banks have raised
their proceeds by 35 % and the major European players by 54 %. The
proceeds of Japanese banks remained stable (1 % increase).
In both 2012 and 2013,
the market share of the top 25 mandated arrangers remained stable at
70 %.
Regional players
In France, BNP Paribas is
the major mandated arranger with 51 % market share. Crédit Agricole
and Société Générale have only 28 % and 22 % market share,
respectively.
In the U.K., Barclays
holds 44 % market share, followed by HSBC and RBS with 28 % market
share each.
The U.S. market is
dominated by JP Morgan (26 %) and Bank of America (25 %), followed by
Citi (16 %) and Wells Fargo (14 %).
In Japan, Mitsubishi UJF
generates 42 % of mandated arranger proceeds, whereas Mizuho and
Sumitomo Mitsui achieve 31 % and 27 %, respectively.
Mandated Arranger
Fees
Industry total
Since 2012, mandated
arranger fees have increased by 43 %. On a regional basis, the fees
of big U.S. banks increased by 23 %, the fees of the main European
players increased by 40 %, and the fees of Japanese banks increased
only slightly by 2 %.
The market is more
concentrated in 2013, compared to 2012: The top 25 players have
increased their market share from 18 % to 31 %.
Regional players
The main French mandated
arranger is BNP Paribas (51 % market share), followed by Crédit
Agricole (28 %) and Société Générale (21 %).
In the United Kingdom,
Barclays dominates the market with 51 % market share. HSBC and RBS
generate 25 % and 24 % of the fees, respectively.
Bank of America (27 %)
and JP Morgan (25 %) are the major players in the U.S., followed by
Wells Fargo (13 %), Citi (12 %) and Goldman Sachs (10 %).
On the Japanese market,
Mitsubishi UJF has 41 % market share, Mizuho 31 %, and Sumitomo
Mitsui 28 %.
Mandated Arrangers
Deals
Top 25
In 2013, the number of
deals of the top 25 mandated arrangers has increased by 20 %.
U.S. banks show the
highest deal flow: In 2013, Bank of America closed 1,754 deals, JP
Morgan 1,592 deals, and Wells Fargo 1,294 deals.
Regional players
The main U.S. players are
Bank of America (27 %), JP Morgan (24 %), and Wells Fargo (20 %).
In the U.K., three banks
divide the number of deals evenly among themselves: Barclays accounts
for 33 %, HSBC for 33 %, and for RBS 34 %.
In France, BNP Paribas
closed 45 % of the deals, Crédit Agricole 30 %, and Société
Générale 25 %.
The major Japanese player
is Mitsubishi UFJ (42 % closed deals), followed by Sumitomo Mitsui
(31 %) and Mizuho (27 %).
Additional visualizations
of the data are available here.
Resource:
Thomson Reuters Global
Syndicated Loans Review – Last update Q4 2013