Leads Market Segment for Second Year in Row
BNY Mellon, a global leader in investment management and investment services, was the leading market provider of trust services in the U.S. for straight debt in 2015, according to internal research and data from Thomson Reuters. BNY Mellon also was the market leader in 2014.
For 2015, BNY Mellon provided trust services for 378 issuances, or 32.6 percent of the straight debt offerings, according to the data. BNY Mellon accounted for 43.7 percent of the $512.8 billion in straight debt volume issued that year. The number of transactions was nearly 13 percentage points higher than the second place finisher. BNY Mellon's volume share was more than double that of the second place finisher, according to the data.
BNY Mellon gained market share in 2015, as its share of the number of transactions rose 9.4 percentage points and its share of the volume of the issuances increased 13.8 percentage points from 2014.
Straight debt includes most types of fixed income, but excludes asset-backed securities and municipal bonds.
In January, BNY Mellon was named the top trustee for high-yield bond issues in 2015 by Prospect News.
Kathleen Scott, head of BNY Mellon's corporate and insurance business in the Corporate Trust group, attributed the continuing market share gains in fixed income issues to process improvements the group began implementing three years ago. She added, "In addition, we believe clients with cross-border requirements appreciate BNY Mellon's international capabilities."
Scott said the demand for straight debt in the U.S. is being driven by investment grade deals, including issues from large multi-national companies. "There is an appetite for high quality issues as recent market volatility has made investors more selective," she said.
BNY Mellon is a leading provider of corporate trust services to the debt capital markets, offering customized and market-driven solutions to investors, bondholders and lenders. As of Dec. 31, 2015, BNY Mellon Corporate Trust served as trustee and/or paying agent on more than 58,000 debt-related issues globally. The corporate trust business utilizes its global footprint and expertise to deliver a full range of issuer and related investor services including trustee, paying agency, fiduciary, escrow, and other financial services. The business administers a wide array of assets and types of programs to multinational corporations, financial institutions, governments and their agencies, and the banking, securities, and insurance industries.