Capital Markets 2018 Deep Dive Mid-Year Update Markets Deep Dive...Capital Markets 2018 Deep Dive Matthew Toole is the Director of Deals Intelligence within Thomson Reuters Investing

Capital Markets 2018 Deep Dive – Mid-Year UpdateJune 12, 2018

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Capital Markets 2018 Deep Dive


Matthew Toole is the Director of Deals Intelligence within Thomson Reuters Investing and Advisory Division and is

responsible for communicating broad M&A, capital markets, private equity and venture capital industry trends through

quarterly research reports and the financial media. Matthew’s research has been featured in various global financial

publications including The New York Times and the Financial Times and he has appeared on CNBC’s Worldwide

Exchange and Squawk Box and The Nightly Business Report.

Stephen Lacey is US Editor for International Financing Review, responsible for coordinating coverage of Americas

capital markets teams (fixed income, securitization, derivatives, equities) across real-time and print publications. Since

joining IFR in 2001, Mr. Lacey has specialized in coverage across the life-cycle of equity capital markets, from venture

capital/private equity to IPO, and onto public equity (primary/secondary stock sales, convertible bonds and M&A). He

previously headed up IPO coverage at Red Herring, a bi-weekly publication focused on the venture capital industry.

Anthony Hughes is Assistant Editor for International Financing Review with primary responsibility for overseeing

equity capital markets coverage, including publication of the IFR US ECM Briefing. In this capacity, Mr. Hughes

specializes in coverage of TMT, Industrials and Financials. He has had a long career in business journalism, starting in

Australia as Investment Editor of the Sydney Morning Herald as well author of a daily stock market column for the

Australian Financial Review. Prior to joining IFR in 2011, Mr. Hughes worked as AFR’s New York correspondent. He

has also co-authored two books on stock market investing in Australia. Anthony is a CFA charterholder.


Capital Markets Deep Dive

28%

30%

21%

21%

Investment BankingRevenue by Product2018

Mergers & Acquisitions Debt Capital Markets

Equity Capital Markets Syndicated Loans

$0

$5

$10

$15

$20

$25

$30

2013 2014 2015 2016 2017 2018

Regional IB Revenues

Americas Europe Asia Pacific

$0

$5

$10

$15

$20

$25

$30

2013 2014 2015 2016 2017 2018

BONDS EQUITY LOANS MA


Global Equity Capital Markets activity falls 4% compared to 2017 levels

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Global IPO ($bil) Global Follow-Ons ($bil) Global Convertibles ($bil)

*year-to-date for all time periods

US Listed Initial Public Offerings hits four-year high, raising $25.8 billion, up

37% from a year ago; Number of offerings up 30%

0

50

100

150

200

250

$0

$10

$20

$30

$40

$50

$60

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

US Listed IPO Proceeds ($bil) Number of Offerings


Top US Listed Initial Public Offerings: First Half 2018


$3

$3

$3

$3

$3

$5

$8

$8

$9

$17

$0 $5 $10 $15 $20

Bolsa Mexicana de Valores

Ho Chi Minh City STC

London

Mumbai

National Stock Exchange

Hong Kong

Shanghai

Frankfurt

Nasdaq

New York

2018YTD IPO Proceeds ($bil)


Could Spotify’s direct listing on the NYSE disrupt the traditional IPO process?


Spotify’s performance since listing on the NYSE


Tech listings lead 2018 offerings with 24% of total proceeds; Industrials lead by

number of offerings so far this year

10

20

30

40

50

60

70

80

90

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

$20

HighTechnology

Financials Healthcare Industrials Real Estate ConsumerProducts

Energy andPower

Retail Materials ConsumerStaples

Media andEntertainment

Telecom

IPO Proceeds ($bil) Number of Offerings

Global Block Trades account for 30% of follow-on activity so far this year, on par

with year-ago levels; Overall follow-ons down from 14% during year-to-date 2018

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Global Block Trades ($bil) Non-Block Trade Follow Ons ($bil) Block Trades a % of Total




Top Global Follow-On Offerings: First Half 2018


Special Purpose Acquisition Company (SPAC) offerings on pace for record year

5

10

15

20

25

30

35

40

45

$0

$1

$2

$3

$4

$5

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

SPAC IPO Proceeds ($bil) Number of Offerings*year-to-date for all time periods

Technology convertible bond offerings account for 21% of total issuance this year

as Twitter, Western Digital, Square tap the markets

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

$0

$10

$20

$30

$40

$50

$60

$70

$80

$90

$100

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Technology Convertibles ($bil) Non-Technology Convertibles ($bil) Technology as % of Total



Global High Yield offerings decline 21% by proceeds and 18% by number of

new offerings

0

50

100

150

200

250

300

350

400

450

500

$0

$50

$100

$150

$200

$250

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Global High Yield Corporate Debt ($bil) Number of Offerings



Top Global High Yield Bonds: First Half 2018


$1

$3

$8

$9

$9

$11

$13

$14

$0 $5 $10 $15

CCC

CCC+

B-

BB+

BB

BB-

B

B+

S&P Ratings ($bil)

Global Investment Grade bond offerings fall 8% compared to year-to-date

2017; US marketplace offerings decline 15% compared to a year ago

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Global Investment Grade Corporate Debt ($bil) Number of Offerings



Top Global Investment Grade Bonds: First Half 2018


121

128129

136

147

126

106

117

109106104

89

9691

0

20

40

60

80

100

120

140

160

2015 2016 2017 2018

Avg. US Investment Grade Spreads (BPS)

Questions and Second Half 2018 Outlook

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Capital Markets 2018 Deep Dive Mid-Year Update Markets Deep Dive...Capital Markets 2018 Deep Dive Matthew Toole is the Director of Deals Intelligence within Thomson Reuters Investing