Spotlight on… top issuers in the US (Q1 2023)

Some US$26.6 billion was collected from 8,362 structured products in the first quarter of 2023 – a 7.2% drop in sales volumes year-on-year (YoY). However, sales were up by 3.9% compared to Q4 2022 when US$25.6 billion was gathered from 7,383 products.

Average sales, at US$3.2m per product, were stable compared to Q1 2022 when products sold on average US$3.3m.

Seventeen different issuer groups, a mixture of US, Canadian and European investment banks, were active in the quarter (Q1 2022: 17).

Citi was the number one issuer during the quarter. The bank captured a 15.3% share of the US market with sales of US$4.1 billion from 1,243 products (Q1 2022: US$3.9 billion from 1,186 products). Almost halve of the bank’s sales in the quarter, at US$2 billion, was tied in 717 products linked to the S&P 500.

In second, J.P. Morgan increased its market share to 13.9% with sales of US$3.7 billion from 1,841 products. Like Citi, a large chunk of its sales came from structures linked to the S&P 500 (US$1.7 billion from 865 products) although its best-selling product, Callable Fixed Rate Notes (48133PDZ3), was linked to the interest rates. The one-year registered note, which pays a fixed coupon of five percent, sold US$307.5m during its offering period, making it the highest selling US product of the quarter.

Morgan Stanley and Barclays both captured 11.2% of the US market while Goldman Sachs, which was the main

US: Top 10 issuer groups - market share by sales volume

issuer in Q1 2022, completed the top five with a market share of 8.3% – down 9.6 percentage points YoY. Goldman’s sales dropped by almost 60% compared to the prior year quarter while its issuance was down 29% YoY.

The only newcomer in the top 10 was Toronto Dominion Bank, which replaced Credit Suisse.

For the FY2022 period, J.P. Morgan replaced Goldman Sachs as the number one issuer in 2022 claiming a 15.5% share of the US market with sales of $14.5 billion from 7,297 products (2021: $12.1 billion from 5,112 products).

In second, Citi increased its market share to 15.3% – up 2.9% from 2021. The bank achieved sales of US$14.3 billion, slightly behind J.P. Morgan, although Citi achieved its volumes from far less products issued (4,919). Goldman Sachs dropped to third place, despite increasing its markets share by 1.4% to 14.1%.