What were the highs and lows of 2016? We look at key trends globally across ECM, DCM, Loans, M&A, and IB Strategy, according to Dealogic figures. For more information or a full copy of our Full Year 2016 Reviews, please reach out to our teams below.
Global ECM Highlights
Global ECM volume of $724.2bn in 2016 marked the lowest annual total since 2012, with volume dropping 21% from 2015 ($913.1bn). IPOs ($135.6bn) were at the lowest level since 2012 ($124.3bn) and down 30% year-on-year.
- Asia Pacific – the region has led global ECM volume for a record two consecutive years, with $313.5bn
- Technology – topped global ECM volume for the first time since 2000, with $81.2bn
- Postal Savings Bank of China IPO – at $7.4bn, it was the largest ECM deal of 2016 and the largest IPO since Alibaba in 2014
- US bought deals – hit a record high volume of $81.0bn in 2016, and surpassed the previous high of $61.6bn in 2015
- JPMorgan – led the global ECM and IPO bookrunner rankings
Global DCM Highlights
Global DCM issuance climbed 9% to $6.69tr in 2016, compared to 2015 volume of $6.13tr, and just shy of the record high of $6.61tr in 2006. It was also a record-breaking year for internationally marketed DCM ($4.23tr), which surpassed the previous high set in 2014 ($4.15tr), and was up 6% compared to 2015. Green bond issuance doubled from the previous record in 2015, with $78.9bn via 168 deals.
- Corporate bond issuance – hit an annual record of $2.40tr
- Acquisition-related DCM – reached a record-high of $426.4bn, with InBev’s $46.0bn bond the second largest on record
- $21.1tr worth of debt – set to mature over the next five years, peaking at $4.91tr due in 2017, with 39% due from EMEA issuers
- Jumbo bond issuance – climbed 13% to $236.8bn, from the previous record set in 2015, and accounted for the largest share of total DCM issuance
- JPMorgan – led both the global DCM bookrunner volume and revenue rankings
Global Loans Highlights
Global syndicated loan volume totaled $4.29tr in 2016, the lowest level since 2012 ($3.48tr) and down 5% on $4.51tr borrowed in 2015. Acquisition-related loan volume of $1.11tr was up 4% year-on-year, the third consecutive year-on-year increase since 2013 ($687.8bn). Technology topped the global loan sector ranking with a 12% market share, followed by Utility & Energy (10%) and Telecom (10%), respectively.
- Global corporate loans – volume of $3.36tr dropped to the lowest level since 2012 ($2.63tr)
- Americas – led the global corporate loan volume ranking with a 64% share, the highest since 1999
- Bayer’s $56.9bn term loan – the largest loan globally in 2016 and the third largest loan on record
- Global loan revenue – increased 4% from 2015 to $14.7bn, reversing the two consecutive year decline since 2013
- JPMorgan – led the global loan bookrunner volume ranking
Global M&A Highlights
After three consecutive year-on-year increases, 2016 global M&A of $3.84tr dropped from the 2015 annual record high of $4.66tr. While volume fell 18% year-on-year, M&A revenue was down only 2%. Cross-border M&A was down 3% globally year-on-year, but China outbound volume hit a record high ($225.4bn) as did US inbound M&A ($486.3bn). 4Q global M&A ($1.27tr) hit the $1tr mark in the first week of December, the third largest quarter on record following 2Q 2007 ($1.51tr) and 4Q 2015 ($1.39tr).
- AT&T’s $107.9bn bid for Time Warner – announced in October 2016, was the largest deal of the year
- October 2016 – the biggest month on record for global M&A with $600.8bn
- China outbound M&A – reached a record level of $225.4bn
- Technology – led all sectors for only the second time with $612.9bn, and closed in on the 2015 record of $691.6bn
- Goldman Sachs – led the global M&A volume ranking in 2016
Global Investment Banking Strategy Highlights
2016 started at the slowest pace in six years for global investment banking (IB), with 1Q revenue of $16.3bn down 18% to the lowest 1Q total since 2010 ($15.4bn). This decline eased through the year, with 3Q ($19.8bn) recovering to the biggest quarter since 2Q 2015 ($21.8bn) and 4Q 2016 revenue of $18.1bn increasing from $17.8bn in 4Q 2015.
- Global IB revenue – declined for the second consecutive year to $73.6bn, dropping 5% year-on-year to the lowest level since 2012 ($69.0bn)
- US revenue – led global IB revenue with $35.4bn, down 3% on 2015. China ranked second with a record-breaking $8.8bn, while the UK completed the top three with $4.0bn
- DCM and Loans – the only markets to increase revenue year-on-year in 2016, up 6% and 4% respectively
- US ECM – dropped for the third consecutive year to $4.7bn, the third lowest level on record, and down 28% from $6.5bn in 2015
- JPMorgan – led the global IB, Loans, DCM, and ECM revenue rankings, while Goldman Sachs led M&A
For more information or a full copy of our Full Year 2016 Reviews, please reach out to our teams below: