Merrill Lynch again brought the largest share of CDOs to the U.S. primary market compared to its peers, bringing some $17.5 billion to the market to achieve an 18.1% market share in the first three quarters of the year, according to data maintained by Thomson Financial. Citigroup Global Markets, moving up from its number three spot in the second quarter, followed behind Merrill, with $12.1 billion of issuance and a 12.6% share of the market.
Bear Stearns jumped in the rankings to round out the number three spot with $8.2 billion and an 8.5% market share - the investment bank ranked ninth in the second quarter, with only $3.5 billion brought to the market.
Overall, CDO issuance again skyrocketed. Issuance in the first nine months of the year came in shy of the $100 billion dollar mark, with $96.5 billion, up 56.9% increase from the $61.5 billion in the same time period last year. There were 230 issues brought to the market, compared with 172 in last year's comparable period, with an average deal size of $419.4 million and $357.3 million, respectively.
Morgan Stanley, the largest U.S. securities firm by market value, descended to the fourth spot among CDO issuers in the first three quarters of the year amid a tumultuous year for the company. The investment bank led $8.1 billion, but underwrote the most deals - 29 - among its competitors. Last year at this time, Morgan Stanley had brought $6.3 billion to the market. Wachovia Securities rose to the number five spot with $7.9 billion in issuance on 15 deals, compared with less than half of that, $3.8 billion, and a number eight rank last year.
Rounding out the top 10 were Banc of America Securities, with $6.5 billion in issuance and 22 deals; Deutsche Bank Securities, with 14 deals totaling $5.3 billion. Lehman Brothers, with 16 deals, toted $5.1 billion and UBS totaled $4.5 billion on 11 deals. Bringing up the bottom of the leaders was JPMorgan Securities, with 10 deals totaling $3.7 billion.
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