The Royal Bank of Scotland Group emerged as the leader among U.S. RMBS managers in the first half of the year, outselling close rivals Bear Stearns and Lehman Brothers by more than $10 billion each, according to data maintained by Thomson Financial. RBS brought 65 deals to the market in the first half totaling $64.2 billion and landing the investment bank a 12.1% market share, up from a 10% slice of the market during the same time period last year, when it brought 66 deals to the market totaling $43.9 billion and a fourth-place ranking.
Bear Stearns came in second, with $53.4 billion worth of deals sold in the first half of the year. Bear brought 65 deals to the market, earning a 10% market share, compared with 72 deals in the first half of last year, which totaled $46,2 billion and also landed Bear a second place finish and a 10.5% market share. Previous leader Lehman Brothers rounded out the top three, bringing 58 deals to market totaling $52.7 billion and a 9.9% market share. In the first half last year, Lehman brought 65 deals totaling $46.4 billion and a 10.6% market share.
Overall, U.S. RMBS market issuance in the first half of 2006 was 21% higher than a year ago, with $532.3 billion worth of securities sold in the market compared with $438.7 in the first half of last year. There were 681 deals brought to the market by the end of June this year, compared with 624 last year.
UBS finished in fourth place in the first half of this year, bringing $37.3 billion worth of deals to the market through 53 issues, earning an even 7% market share. UBS during the same time period last year brought 59 deals to the market totaling $46 billion and a 10.5% market share. JPMorgan Securities settled into the number five slot, bringing 58 deals to the market totaling $36.3 billion and a 6.8% market share. JPMorgan last year ranked tenth among RMBS managers, selling only 25 deals that added up to $20 billion and a 4.6% market share.
The investment bank squeezed in barely above rivals Credit Suisse and Goldman Sachs, which finished in sixth and seventh place, respectively, yet all enjoyed the same 6.8% slice of the market. Credit Suisse brought 49 deals to the market totaling $36.2 billion, while Goldman sold 42 totaling $36 billion.
Banc of America Securities fell in the first half to a ninth place finish, up from fifth place a year ago. The bank sold 60 deals totaling $27.9 billion and a 5.2% share of the market, compared with 58 deals totaling $36.6 billion and an 8.3% market share a year earlier. New entrants to the top 20 RMBS managers in the first half included HSBC Holdings, which ranked 17th; ABN Amro, in 19th place and finally First Tennessee Bank, which brought only $493 million through two deals, but landed at number 20.
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