BofA, Citi lead; Wells and Baird climb in 1H

July 5, 2019 1:45 PM

With the year halfway done, the top municipal bond underwriters are outperforming what they did in the first six months of 2018. The leading 15 bookrunners have accounted for $140.09 billion of 2,717 transactions so far this year, up from $134.41 billion over 2,514 deals in the same time last year. The top six spots were all unchanged year-over-year but the rest of the results were a mixed bag.

Bank of America atop the league tables

Bank of America found itself in a familiar position with the conclusion of the first half, despite the fact that it was one of two of the top 10 underwriters that failed to have a higher par-amount year-over-year. The firm has is still outpacing the rest of the pack with relative ease for the year, amassing $25.24 billion in 197 deals or 15.3% market share, compared to $26.85 billion and a 17.2% market share.

Bank of America was the leader out of the gate after the first quarter, but did quite have the best second quarter, finishing in second with $11.34 billion — less than a billion away from the lead.

The biggest deals BofA ran the books on in the second quarter included: State of North Carolina's $600 million on May 23; Illinois Finance Authority's $450 million on April 3; and Montgomery County Higher Education and Health Authority's $449.745 million on June 20.

Citi sitting second

Citi accounted for $17.52 billion over 193 transactions or 10.6% market share compared to $20.34 billion and 13% market share it had during the first half of 2018. They are the other only firm in the top 10 who's par amount was lower than it was during the same time last year.

For the second quarter strictly, Citi was in third place with $7.86 billion spanning 93 transactions.

Among the biggest deals the firm ran in the second quarter were: Pennsylvania Turnpike Commission's $722.97 million on June 19; Commonwealth Financing Authority's $429.8 million on May 9; and University of Texas System Board of Regents' $318.715 million on June 27.

Morgan Stanley uses strong second quarter to stay in third

Morgan Stanley was buoyed to third place with $17.45 billion and 10.6% market share, up from the $13.68 billion and 8.8% market share it achieved in the same period of time a year ago.

After starting the year off slow and account for just $5.33 billion after the first quarter, good for fifth place — the firm surged in the second quarter and produced a first place worthy total of $12.12 billion.

Some of the firms biggest deals in the quarter were: California's $2.02 billion on April 11; Florida Development Finance Corporation's $1.75 billion on April 2; and FDFC's $950 million on June 13.

JPMorgan stays put

JPMorgan was in fourth place all across the board, for the quarter, and for the first halves of this year and last. JPM amassed $13.48 billion or 8.2% market share in the first six months of the year, compared to $12.67 billion or 8.1% market share in the same time last year. For the second quarter alone, JPM accounted for $7.81 billion and 8.8% market share.

The firm was lead manager on the following transactions: Michigan Finance Authority's $600 million on June 11; Austin, Texas' $464.54 million on May 22; and New York City Housing Development Corporation's $359.64 million on June 13.

RBC remains at five

RBC Capital Markets finished the first six months of the year with $11.49 billion in 288 transactions or 7% market share, compared to $11.17 billion over 222 deals and 7.2% market share in the same time the previous year. The firm also finished fifth for the quarter with $5.32 billion or 8.1% market share.

RBC ran the books on the following large transactions in the second quarter: Allegheny County Hospital Development Authority's $726.65 million May 15; New Mexico Municipal Energy Acquisition Authority's $616.21 million on June 11; and Lancaster Port Authority, Ohio's $300.065 million on June 25.

Goldman Sachs stays in sixth

Goldman was still seated in sixth place with $9.63 billion in 58 deals or a 5.8%, one of four firms in the top 15 who have less than 100 transactions so far in 2019. The number of deals is not necessarily new, as during the same time frame last year, it did $8.56 billion in 54 issues.

PEFA, Inc., Iowa's $612.895 million on May 22; Tuscaloosa County Industrial Development Authority's $612 million on April 17; and Arkansas Development Finance Authority's $487 million on May 21.

Shuffled around

The remaining firms were all mixed around. Stifel moved up one spot from where it was a year ago, up to ninth with $6.27 billion, Barclays rose three spots to round out the top ten with $6.06 billion. Raymond James fell two spots with $5.43 billion, Piper Jaffray stayed steady in the 12th spot with $5.11 billion, Jefferies suffered the biggest decline, dropping to 13th from 7th place with $2.85 billion. Siebert Cisneros and Shank improved by two places with $2.29 billion and DA Davidson dipped one place to finish the top fifteen with $2.25 billion.