Though Fitch Ratings predicted that the Q2 2020 jump would gradually taper off in H2 2020, Q3 2020 saw several new records set in various segments of ECM.
Based on a report from Refinitiv, global ECM activity reached the highest level on record during the first nine months 2020. Global ECM activity surged 59% YoY to $750.7 billion during the period with over 4,200 offerings.
Initial public offerings (IPOs) increased by 26% as secondary offerings shot up by 78% and convertibles up by 41%. Global debt capital markets (DCM) set a new record issuance figure of $8 trillion in the nine-month duration. In fact, issuance in the US shot up 61% during the period as compared to a similar period in 2019. APAC saw a 71% increase while in EMEA, there was a 56% spike.
Moreover, during Q3 2020, there was an overall fee haul of $91 billion in investment banking, up by 15% from Q3 2019. The increase was driven by a 70% rise in equities and 29% in bonds. Together, they offset a 16% decline in mergers and acquisitions (M&A) and an 11% drop in loans.
Mega M&A transactions during the quarter also set a new record of $496 billion, double the figure recorded in Q2 2020. The tally of 37 transactions was the highest ever for mega deals.