Royal Bank of Scotland Group overtook Bear Stearns as the top U.S. RMBS underwriter as 3Q06 came to a close, according to data maintained by Thomson Financial.
RBS brought nearly $80 billion in deals to market, garnering a 12% market share in the first three quarters of this year. This is compared to $66.7 billion worth of deals and an 11.1% market share at this time in 2005, which had earned it a second place finish behind the then number one Bear Stearns. In the third quarter, RBS brought $24.6 billion worth of deals, earning a 12.2% market share - just over its second quarter, second place finish, when it brought $28.7 billion in deals and earned an 11.7% market share.
Bear finished just behind RBS for the first three quarters combined, with $74.2 billion in deals brought to market as the third quarter rounded out. Bear earned an 11.2% market share, slightly below its 11.6% market share it had at this time last year from $69.7 billion in deals. Bear finished in third place for the third quarter, with a 9.5% market share and $19.2 billion in deals, a slowdown from its second quarter pace, when it finished first with a 13% hold on the market by bringing $31.8 billion in deals to market. Overall, the RMBS market, including agency and non-agency issuers, brought $663.2 billion in deals in the first three quarters of this year, compared to about $600 billion at this time last year. Looking at the third quarter by itself though, the pace of issuance has slowed slightly. Some $202 billion in deals were brought to market in the third quarter, compared to $245.7 billion in the second. Even so, a healthy year-end surge of deals should ensure RMBS issuance tops last year's total, market participants estimate.
Lehman Brothers finished in third place for the first three quarters of the year, bringing $70 billion in RMBS to the market, earning a 10.5% market share. The bank didn't budge from its third place spot garnered at this time last year, when it brought $66.3 billion to the market and had an 11.1% market share. In the third quarter alone, Lehman finished in second place, with $22 billion in deals and a 10.9% market share, compared to its third place finish in the second quarter, when it brought $22.8 billion to the market and had a 9.3% market share.
Deutsche Bank made an impressive gain to fourth place in the first three quarters of this year - from 10th place at this time last year. The bank brought $47.5 billion in deals to the market for a 7.2% market share - about $20 billion more than this time last year, when it had brought $27 billion to the market for a 10th place finish and only a 4.5% market share. Deutsche, in the third quarter alone, brought $18.4 billion in deals to market for a fourth place finish and 9.1% market share. In the second quarter, it finished in fifth place, with a 7.3% market share garnered through the sale of $18 billion in RMBS deals.
UBS rounded out the top five RMBS underwriters as of the end of the third quarter. The bank brought $47.4 billion in deals to the market for a 7.1% market share. At this time last year, UBS sat in fourth place with a 10.7% market share garnered through the sale of $64.2 billion in deals. The bank, however, fell to 10th place in the third quarter alone. It brought about $10 billion in deals to the market and had a 4.9% market share, compared to a fourth place finish in the second quarter, when it brought $22.8 billion in deals and had a 9.3% market share.
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