In a year marked by challenges in executing asset-backed securitizations, such as escalating interest rates and weaker fundamentals in the residential- and commercial-mortgage markets, Bank of America Merrill Lynch came out on top with $32.3 billion in new business in 2023.
The bank was the top manager for new student loan ABS and residential mortgage-backed securities, leading about $4.1 billion and $10.5 billion in new originations for those sectors alone, according to preliminary data from the Asset Securitization Report's deal database. Otherwise, it landed in the top 10 grouping of every asset class, and landed in the top five for all other asset classes except commercial- mortgage-backed securities, the database shows.
BofA also edged out J.P. Morgan Securities, which came in second, with $31.4 billion in new business, according to ASR's tally. A quick glance backward shows that BofA claimed the top spot from J.P. Morgan Securities, which led the industry for bringing new deals to market in 2022 and 2021.
The top 10 banks accounted for $183 billion in new business, a decisive 63.48% majority, according to the ASR database.
The reasons for BofA's success vary, but in a year when the auto ABS sector experienced a surge in issuance in the second half of the year, BofA ranked third among top managers in that sector. It was responsible for leading $12.7 billion in new auto ABS business that closed in 2023, according to ASR's numbers.
Rounding out the top five managers in the tally for 2023 in third, fourth and fifth place were Wells Fargo Securities, Barclays and Citigroup Global Markets, with $23.7 billion, $22.7 billion and $21.1 billion in new business, respectively.
Auto ABS origination business made a difference for more than just BofA. Barclays had $7.7 billion in auto lease and loan securitization business, and TD Securities entered the ranking at #10, with $6.1 billion of auto finance securitization to its credit, according to the database.
For the rest of 2023's top 10, Goldman Sachs & Co., managed $14.7 billion in originations; Deutsche Bank Securities with $13.5 billion in new business; Mizuho Securities with $9.7 billion in securitizations; Societe Generale with $7.0 billion and TD Securities had $6.6 billion in mandates.
