Manama: Mahmood Rafique, Editor: Looking into the results of top investment banks for Q3 2020 reveals an interesting insight. While most business areas experienced rollercoaster rides during the period, Equity Capital Markets (ECM) flourished throughout.
According to its earnings report, Bank of America’s global investment bank which includes ECM reported having its second-best quarter ever. That was as a result of a 147% rise in equity underwriting fees. For Goldman Sachs, ECM revenue was up by almost 134% YoY in Q3 2020.
A Fitch Ratings report showed that during Q2 2020, revenue from capital markets at the top 5 US banks surged 63% to reach $44.9 billion. It resulted from the central bank stimulus, which triggered a rise in the issuance of debt and equity.
Debt and equity revenues for the period shot up by 57% and 85% respectively. Goldman Sachs posted an 81% upsurge in capital markets while for Morgan Stanley, there was a 63% spike.
Global ECM issuance during Q2 2020 hit a five-year high due to record activity levels. Compared to Q2 2019, there was a 78% surge in issuance according to S&P Global.
In total, global issuance amounted to $364 billion at the end of the period. The figure nearly tripled from $104 billion in Q1 2020 to $260 billion in Q2 2020.
