Citigroup Inc and Merrill Lynch & Co were the world's top underwriters of stocks and bonds in 2007, measured by volume and reported fees, despite being at the epicenter of the global credit crisis.

While Citigroup remained the top underwriter by volume for an eighth straight year, it ceded its fee crown to Merrill, according to data released by Thomson Financial.

A pullback in debt issuance industrywide caused the first drop in overall debt and equity underwriting since 2002.

Such pain may continue in 2008, as investors shy away from debt they deem unsafe, leading to further write-downs at major banks.

Economists expect that credit losses will trap an even wider array of borrowers.

Overall underwriting volume fell 4 percent to $7.51 trillion, Thomson said.

Citigroup arranged $617.6 billion of offerings, capturing an 8.2 percent share, Thomson said. JPMorgan Chase & Co was second with $554.1 billion of offerings and a 7.4 percent share, followed by Deutsche Bank AG with $481.9 billion of offerings and a 6.4 percent share.

Reported fees rose 7 percent to $15.92 billion, helped by a 22 percent gain in volume of more lucrative equity offerings.

Merrill, which ranked fourth in underwriting volume, took a 9.7 percent share, while Citigroup had 9.3 percent and JPMorgan 8.6 percent.

Bankers covet top rankings in Thomson's underwriting "league tables" for marketing purposes and bragging rights.

Agencies

(China Daily 01/02/2008 page17)