While traditional private placement volume recorded a 6.8% decrease in 2005, totaling $35.5 billion compared to $38.1 billion for the same period the previous year, securitized private placements underwent a dramatic increase. They amounted to $364 billion in proceeds, up from $253 billion in 2004, representing a 43.9% increase, according to the latest Thomson Financial league tables.

The year-end league tables cover business across the top 15 industry players.

Merrill Lynch took the lion's share in the securitized league tables, with $33.6 billion in proceeds, a 9.2% market share and a 58.8% increase compared to the $21.1 billion it reported in 2004. Out of the 113 securitized issues it placed for the period, 90 were asset-backed deals, securing the bank first place in that category as well, with $31.2 billion in proceeds and 23 mortgage backed ones.

Coming in second in the securitized arena was Citigroup, with $29.9 billion in proceeds across 170 issues. The figure represents an 8.2% market share and a notable increase compared with the $14.9 billion it reported last year. The bank structured 146 asset-backed deals and 24 mortgage-backed ones for the period.

Following was Deutsche Bank Securities, which lost the top spot with $27.1 billion in proceeds across 100 asset-backed transactions and 36 mortgage-backed deals. Its proceeds represent an increase compared with the $23.6 billion it reported last year.

Rounding out the top five busiest agents for securitized private placements were Lehman Brothers, with $26.6 billion in proceeds across 205 transactions, and Banc of America Securities, with $24.4 billion in proceeds across 147 deals.

The industry total for asset-backed private placements increased in both proceeds and the number of issues to $296.7 billion across 1,259 issues, from $211 billion across 923 issues in 2004.

Mortgage-backed private placement proceeds increased, totaling $67.4 billion across 319 deals, from $42.4 billion across 260 transactions in 2004, a 59% increase.

Countrywide Securities took the lead in that category with $15.6 billion across 26 issues, followed by Bear Stearns with $6.6 billion across 60 issues and Credit Suisse with $6.3 billion across 33 issues.

Regarding issuance stemming from the 144A convertible private placement market, it continued its downward spiral, plummeting to $27 billion across 83 issues in 2005, from $32 billion in 2004 and $70.5 billion in 2003. Lehman Brothers ranked No. 1 with $3.5 billion in proceeds across 14 issues, replacing Morgan Stanley, which fell to the ninth spot with $1.1 billion in proceeds.

(c) 2006 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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