Barclays gets most Fannie, Freddie, FHLB business
NEW YORK (Reuters) - Barclays Capital, the investment banking arm of Barclays Plc (BARC.L), retained its spot as top underwriter in the $3 trillion federal agency debt markets in 2008 year-to-date from a year earlier, according to Thomson Reuters.
The firm managed $69.1 billion in debt of issuers including Fannie Mae, Freddie Mac and the Federal Home Loan Bank system, nearly $10 billion more than No. 2 manager Deutsche Bank AG (DBKGn.DE), Thomson Reuters data shows. Deutsche Bank edged up from third during the same period of 2007, pushing JPMorgan Chase & Co (JPM.N) to third from second.
Including debt with maturities or call-options shorter than 18 months, JPMorgan held its top rank for the period. Barclays rose to second from third, while Merrill Lynch & Co MER.N jumped to third from sixth.
In total, dealers managed $410 billion of the longer-term agency debt so far in 2008, up from $291.1 billion in the same period for 2007, the data show. Total issuance for the period soared to $878.3 billion from $600.2 billion.
Greater volume has come as Fannie Mae (FNM.P) and Freddie Mac (FRE.P) have expanded their debt-funded mortgage investment portfolios this year to improve revenue and bolster housing markets. The Federal Home Loan Bank system has boosted its loans to member banks as the credit crunch sealed off other sources of funding for their businesses.
The government-sponsored enterprises (GSEs) typically hire three dealers to lead their largest syndicated issues of $3 billion or more, and share in underwriting fees.
Mortgage-backed securities issuance dropped sharply in the first nine months of 2008, sending top issuers such as Lehman Brothers Holdings Inc. (LEHMQ.PK) and Morgan Stanley (MS.N) down to fifth and 12th from second and third, respectively, in rank. Bank of America Corp.'s (BAC.N) securities unit rose to the top spot from fifth a year earlier, unseating JPMorgan, which slipped to third, the data show.
Credit Suisse (CSGN.VX) managed the second most mortgage securities issues, which include the repackaging of Fannie Mae and Freddie Mac mortgage bonds. The data also measure issuance of private label mortgage bonds that came to a halt this year as the U.S. housing slump and credit crisis froze demand.
(Reporting by Al Yoon; Editing by Diane Craft)
