What were the highs and lows of Q1 2017? We look at key trends around the world, across ECM, DCM, Loans, M&A, and IB Strategy, according to Dealogic figures. For more information or a full copy of our 1Q 2017 Quarterly Reviews, please reach out to our teams below.
- Investment banking – Global IB revenue ($19.6bn) topped Q1 2016 by 20%. US revenue was up 32% on Q1 2016, while Asia Pacific revenue increased 9%. EMEA revenue increased 5% year-on-year
- DCM – With $1.01tr via 464 deals, global $1bn+ bond activity was the highest for a quarter since Q1 2012 (502 deals raising $1.01tr) and volume was the highest since Q2 2009 ($1.05tr, 469 deals)
- Loans – The biggest loan globally in Q1 2017 was signed by British American Tobacco. The $25.0bn deal is the fourth biggest UK loan on record
- ECM – Global ECM volume increased 57% from Q1 2016 ($138.4bn) to $217.1bn in Q1 2017, as IPO volume more than doubled to $36.0bn, compared to $13.9bn in Q1 2016
- M&A – The appeal of cross-border M&A continued, with $317.6bn in Q1 2017, the second highest Q1 volume on record globally behind 2007 ($358.0bn)
- Deals – Johnson & Johnson’s $31.4bn bid for Actelion was the top M&A deal of Q1 2017. The biggest bond of Q1 was issued by Microsoft ($17.0bn) while ECM was led by UniCredit ($13.7bn)
Despite consistent annual drops since 2013, US revenue totaled $9.7bn in Q1 2017, up 32% from Q1 2016 ($7.4bn).
While US-listed IPOs saw a drastic rise in volume, follow-ons saw a more modest rise of 6.1% year-on-year to $45.5bn (via 219 deals). Oil & gas led all sectors in US-listed follow-on volume, raising $11.7bn via 21 deals.
Americas DCM revenue totaled $3.0bn, up 41% from Q1 2016 and accounting for 50.5% of global DCM revenue.
- Americas IB revenue – increased 31% to $11.2bn from Q1 2016 ($8.6bn)
- US-listed IPOs – soared 1,017% to $13.4bn via 29 deals. The biggest jump across deal types in the US ECM market
- Record LevFin – US LevFin volume set a new record with $379.1bn, more than four times the volume of Q1 2016 ($88.4bn)
- US M&A – dropped 55% to $293.9bn from the record Q4 2016 ($646.4bn)
- JPMorgan – led Americas IB revenue for the thirteenth consecutive quarter
Asia Pacific Highlights
APAC International DCM volume hit a record-breaking $189.4bn in Q1 2017, almost double on Q1 2016 ($97.6bn) and beating the previous quarterly record of $133.1bn in Q2 2014.
Outbound M&A from APAC ($76.3bn) declined 42% from Q1 2016 ($132.3bn), and activity (713 deals) reached its lowest Q1 level since 2015 (606 deals). The biggest decline came from deals targeting Europe, South East Asia, and Japan.
IPO activity in APAC reached its highest Q1 level on record (269 deals) with volume ($14.8bn) increasing 65% from $8.9bn in Q1 2016.
- Investment banking revenue – increased 8% year-on-year to $3.7bn, reaching the highest Q1 level since 2011 ($3.9bn)
- APAC-targeted cross-border M&A – totaled $38.6bn, down 24% from Q1 2016
- DCM issuance – reached $189.4bn, the highest quarterly volume on record
- China offshore bond volume – set a record quarterly high of $58.0bn
- Japanese corporate bonds – totaled $23.8bn, the highest since Q1 2012 ($26.6bn)
- Morgan Stanley – led the IB revenue rankings with $208m
EMEA IB revenue ($4.6bn) was up 5% in Q1 2017, despite a 27% decline in M&A revenue in the region. However, consolidation among large corporates continues to push up M&A volumes in the region ($277.5bn), reaching the highest Q1 since 2008 ($333.3bn).
In the ECM markets, volume was driven by accelerated offerings which reached $25.3bn, up 94% on Q1 2016 ($13.0bn). Accelerated offering activity was also the highest quarter on record (176 deals).
At $842m, EMEA DCM IG revenue was just 4% shy of Q1 2016. In contrast, revenues for the top five countries dropped to $516m, down 30% from last year.
- EMEA IB revenue – increased by 5% to $4.6bn in Q1 2017, and accounted for only 23.3% of global IB revenue ($19.6bn)
- $13.7bn – UniCredit’s rights issue was the largest EMEA ECM deal since 2010, boosting revenue from right’s offerings to $445m
- European LevFin revenue – jumped 146% year-on-year to $537m, driven by a surge in high-yield DCM revenue ($243m)
- EMEA withdrawn M&A – totaled $203.5bn, already exceeding full year 2016 volume ($122.3bn)
- JPMorgan – led EMEA IB revenue rankings for the eighth consecutive quarter
For more information or a full copy of our First Quarter 2017 Reviews, please reach out to our teams below: