*****

  • On 6/2/09 we moved! Visit our new Wall Street Folly site at wallstreetfolly.com


  • Web
    Wall Street Folly

*^*^*^*

  • Apple iTunes OmahaSteaks.com, Inc. wine.com

Recent Posts

$$$$$$$

Archives

More...

Categories

^^^^^







  • ;

Copyright / Disclaimer

  • Disclaimer: Wall Street Folly offers gossip, rumors, opinions and highlights news which we believe is important. We're heavy on humor and satire (or try to be), and often focus on the hilarious, the sordid, the salacious, the absurd and the horrific that occurs on Wall Street and beyond. The site relies heavily on reported information from other publications and sites which we hope is correct, but may or may not be -- we can't / won't guarantee it. We cite our sources where applicable. So please do your own research and draw your own conclusions. The site is not a broker, dealer, or investment advisor and any opinions are ours alone and are protected by the First Amendment.
  • © Wall Street Folly

« More on the aborted secret Lehman stake sale talks; CITIC denial; Citigroup lowers Lehman estimates; WSJ: The Fed investigated a rumor last month that Credit Suisse pulled a line of credit from Lehman | Main | WSF Headline Roundup - 8/22/08 - Merrill, Goldman, Deutsche Auction-rate settlement; FNM/FRE world 'catastrophe'?; Weighing who to hurt in a FNM/FRE rescue; No tanker bid for Boeing?; Hummer for sale; Judge opposes Steve & Barry's sale; Warner making pri »

Another headache for the brokers: Junk debt underwriting is down big time

The hits just keep on coming: One by one, big revenue streams that the major investment banking firms have enjoyed are drying up.  The latest: the junk bond business.  Underwriting fees have dropped dramatically.  According to the NY Post:

Underwriting volume this year for high-yield securities, known widely on Wall Street as junk debt, has sunk at firms such as Merrill Lynch, Citigroup, Lehman Brothers and JPMorgan Chase, adding more salt to the wounds already inflicted by massive losses on souring mortgage securities.

According to Thomson Reuters, junk-debt issuance in the US is down 64 percent this year, with investment banks having issued $35 billion so far this year.

That compares with a whopping $98 billion in issuance this time last year. In Europe, junk-debt issuance is off 84 percent so far this year.

JP Morgan stands at the head of the league tables, having underwritten around $80 billion so far thisyear, down a whopping 68% from last year.

A Junk Debt Funk - NY Post

August 21, 2008 in Citigroup, High Yield Bonds, JPM Chase, Lehman Brothers, Merrill Lynch |

Comments

The comments to this entry are closed.