Controversial though they are, MTN league tables cannot be ignored and Merrill Lynch, Euromoney MTN House of the Year, tops them all. It is way ahead in terms of programmes arranged, presence on dealer groups and as a bookrunner of non-syndicated MTN issues.
“Most houses tend to focus solely on the MTN new-issue side,” says Scott Church, Merrill’s head of Euro-MTN origination. “We balance both programme arranging and product development on the one hand and MTN new issues on the other.”
The bank is a dealer on over 350 programmes. Some might consider this excessive but it is a cornerstone of Merrill’s MTN strategy. Says Church: “The dealership role means a lot to us. We really embrace the idea of sponsorship: guiding the issuer through the MTN market. This can be critical with emerging market, corporate and other new credits.”
Focus on Japan is a must in MTNs but for Merrill, currencies other than yen and diversification are as important. For example in 1997 to May, it puts the share of yen trades in its non-syndicated issuance at 20% while other currencies, such as sterling and lire, form a larger part of its business. The proportion of yen for the market as a whole from Capital NET MTNWare is over 40%. Nonetheless, yen volumes remain strong and Merrill Lynch claims to be the number one non-Japanese dealer in Euroyen.
Top tier Morgan Stanley Last year’s award winner, Morgan Stanley, was not easily toppled and is a top-tier house in both arranging and trading. Structured trades, a characteristic feature of the MTN market, is one area where the bank continues to impress. Helping to open the single-A pool of borrowers to MTN investors, Morgan Stanley has arranged programmes for US issuers such as American Express, Comerica and Huntington Bank.
