Lehman Brothers shot to the top of the asset-backed league tables for public and rule 144A underwriting in the second quarter, as preliminary numbers showed. Lehman issued $10.4 billion worth of business for a leading 15.4% market share in the second quarter according to Securities Data Co.
This was a considerable jump from its fifth place finish in the first quarter, when the investment bank led $3.9 billion in deals for a market share of less than 8%. (For preliminary League Tables, see p.10.)
While total amount of issuance was up some $17 billion versus the first quarter, Lehman made the most significant gains. The bank increased management $6.5 billion on a quarter-over-quarter basis, and bested its 1998 second quarter showing by $2.6 billion.
Salomon Smith Barney remained in the hunt, though it dropped to second place from its first place finish in the first quarter.
Salomon completed $9.8 billion in business in the second quarter, which is a $2.4 billion slide from the investment bank's first quarter performance. The bank had a crushing 24% market share in the first, garnering 33 in deals for $12.2 billion, but found stiff competition in Lehman, which nosed Salomon by $600 million.
Still, Salomon has continued a top presence in the league tables, making a steady climb from the fourth place spot in the 1998 third quarter. The company rose to third place in the 1998 fourth quarter, then to first place in this year's first quarter.
Al Hagemen, asset-backed head at Citicorp, chalks up Solly's improved performance to complimentary businesses and synergies arising from the merger between his company and Salomon.
"Salomon had a very good, focused [public] business," Hagemen said. "When you add the more traditional parts of the Citi business, which are the private, conduit parts, we've been able to really expand our target market."
Hagemen said the company has over 50 mandates to do approximately $15 billion to $16 billion in non-public deals in what looks to be a record-setting third quarter. - SK