Information > Manual 166 > This page

THE ECONOMICS OF THE PRIVATE MARKET

Who Are the Agents?

According to a database supplied by the publishers of the Investment Dealers Digest, thirty investment banks and commercial banks were responsible for 96 percent of the volume of all agented privately placed debt transactions from 1989 through 1991 (see table 10). Each of these agents placed at least $1 billion of debt securities during at least one of those three years. The database, however, does not include all new private issues. Possibly, a table based on a complete list of transactions would change the ranking somewhat and would add entries to the list. 121

10.  Major agents of U.S. private placements of debt, 1989-91

Agent
Rank according to business volume1 Three-year agent volume
Private
placement
agenting
Investment
banking
Commercial
banking
Amount
(millions of
dollars)
Percent of
total
Goldman Sachs 1 2 . . . 37,469 11.7
First Boston 2 4 . . . 32,143 10.0
Salomon Brothers 3 7 . . . 25,811 8.1
J.P. Morgan 4 12 8 22,075 6.9
Merrill Lynch 5 1 . . . 19,574 6.1
Lehman Brothers 6 3 . . . 16,635 5.2
           
Citicorp 7 (2) 1 14,485 4.5
Chase Manhattan 8 . . . 5 13,264 4.1
Morgan Stanley 9 6 . . . 12,908 4.0
Drexel Burnham 10 n.a. . . . 12,246 3.8
Paine Webber 11 11 . . . 11,726 3.7
FNB Chicago 12 . . . 10 11,009 3.4
           
Chemical Bank 13 . . . 23 10,708 3.3
Bankers Trust 14 . . . 20 10,167 3.2
Kidder Peabody 15 5 . . . 8,387 2.6
Continental Bank 16 . . . 13 6,460 2.0
Bank of America 17 . . . 3 6,164 1.9
Manufacturers Hanover 18 . . . 23 5,740 1.8
           
Donaldson Lufkin 19 10 . . . 4,022 1.3
NationsBank/NCNB 20 . . . 4 3,714 1.2
Dillon Read 21 (2) . . . 3,517 1.1
Bear Stearns 22 8 . . . 3,125 1.0
Smith Barney 23 14 . . . 2,997 .9
Capster Partners 24 . . .   2,634 .8
            
Prubential-Bache 25 9 . . . 2,566 .8
Dean Witter 26 15 . . . 1,929 .6
Wertheim Schroder 27 . . . . . . 1,802 .6
Lazard Fréres 28 . . . . . . 1,184 .4
Barclays 29 . . . . . . 1,159 .4
Alex Brown 30 13 . . . 1,091 .3
  1. Investment and commercial banking ranks were determined using underwriting and loan volumes respectively.

  2. Dillon Read and Citibank were the eleventh and twelfth ranked investment banks for investment grade debt respectively.

  3. End-of-1991 consolidated loans were combined for Chemical and Manufacturers Hanover in arriving at a bank ranking.  Sources. Noted in text.

  1. The total number of agents of private placements is unknown because many banks, investment banks, and ''boutiques'' act as agents for relatively small volumes of issuance.  The IDD data files for 1989-91 list 173 organizations as agents, many of them for only one or a few transactions in a single year. Many agents with a relatively small volume of business do not report their transactions to IDD. Market participants' off-the-cuff estimates of the total number of currently active agents range from 100 to 300.

The Stages of a Private Placement Transaction

Click here to download The Economics of the Private Market in .pdf format