HOW SHOULD CFOs READ LEAGUE TABLES?

The case for using a 15-year time horizon (a fair timeframe for any benchmarking)

A cross analysis of league table performance over the last one calendar year as well as across a 15-year horizon (2007-2021)

League tables have an important role to play in today’s capital markets. While most Asian capital markets are advanced enough not to rely singularly on the volume of deals, many CFOs will privately admit product innovation by itself is not enough of a deciding factor when it comes to handing out mandates.

And while league tables no doubt serve as a useful record of who has broadly helped raised how much, it is an open secret data can often be sliced and diced to represent and serve a certain narrative.

Therefore, in this section we present leagues tables from the year past (1 Dec 2020 to 30 Nov 2021) as well as over the past 15 years to coincide with our 15th anniversary as a Southeast Asian focused capital markets journal.

The purpose is to see if a given investment bank, debt house or equity house that has performed well last year has done the same over the last 15-year period

As per our editorial mandate, we cover Indonesia, Malaysia, Philippines, Singapore & Thailand.

BOND MARKET

1. Top 5 Bond Houses in Indonesia 2021

Period: 1 Dec 2020 to 30 Nov 2021 Source: Refintiv

In Indonesia, IndoPremier secured a 12.8% market share between 1 Dec 2020 to 30 Nov 2021, slightly ahead of Mandiri Sekuritas at 12.6%. While Mandiri Sekuritas is backed by a large Indonesian bank, Bank Mandiri, IndoPremier is an independent house that prides itself for its in-house innovation.

Along with BRI Danareksa, the 3 key players in Indonesia continue to leave an indelible mark on the local market by not only undertaking issues, large and small but contributing to its ongoing development. The three key players nonetheless have interchangeably remained at the top of the IDR bond market over the last decade, with IndoPremier in recent years, firmly entrenched at the pole position.


Top 5 Bond Houses in Philippines 2021

Period: 1 Dec 2020 to 30 Nov 2021 Source: Refintiv

In the Philippines, China Bank Capital Corp was responsible for 19.7% or nearly one-fifth of the volume of bond deals out of the Philippines in 2020-2021, while Philippine National Bank secured 18.6% of the deals. With Standard Chartered at 13.4%, the three top bond houses collectively were responsible for just over half (51.7% of the PHP bond market). This however wasn’t always the case.

Leading bond houses like bank backed-BDO Capital, BPI Capital & First Metro Investment Corp., have traditionally or least until 3-5 years held a unique stranglehold over the PHP bond market. Therefore the emergence of China Bank Capital Corp and other bond houses at the pole position over the past year is indication of possible changing dynamics at the balance sheet lending level at large local banks in the Philippines, unique funding requirements of leading Philippine credits, among other evolving factors.


Top 5 Bond Houses in Thailand 2021

Period: 1 Dec 2020 to 30 Nov 2021 Source: Refintiv

In Thailand, Kasikornbank (16.6%) and Bangkok Bank (12.1%) collectively raised 28.7% of local currency debt with CIMB Thai remarkably closing in close at 11.2%. While the third spot is traditionally a mainstay for a homegrown bank like Siam Commercial Bank which was ranked 4th this year at 9.4%, CIMB Thai (CIMBT) has tirelessly been working its way up the very steep pole for the last 5-7 years. CIMBT’s current position however is not just an indication of its strength but a clear sign of its ambition to get as close as possible to the pole position.


Top 5 Bond Houses in Singapore 2021

Period: 1 Dec 2020 to 30 Nov 2021 Source: Refintiv

In Singapore, DBS has uncompromisingly held on to the pole position for as far back as contemporary league tables go. Over the last 15 years, it has remained at the number one position except in FCY 2008-2009 when it stumbled to number two position behind OCBC. In any case, the other top players in Singapore are interchangeably UOB and OCBC, very occasionally interrupted by a foreign bank or the other.


Top 5 Bond Houses in Malaysia 2021

Period: 1 Dec 2020 to 30 Nov 2021 Source: Refintiv

In Malaysia, the outcome is more of the same with CIMB usually at the top of the MYR bond market league table but infrequently nudged off to second place by Maybank or approximately once every five-odd years. RHB and AmInvestment Bank meanwhile amicably share the 3rd and 4th positions, focusing instead on niche project finance and infrastructure financing deals in what is a fiercely competitive local bond market.


Top 10 Bond Houses in Southeast Asia 2021

Period: 1 Dec 2020 to 30 Nov 2021 Source: Refintiv

Period: 1 June 2007 and 30 November 2021 Source: Refinitv

BEST BOND HOUSES (OVER A 15-YEAR PERIOD)

Viewed as whole however – especially over a 15-year time horizon (a fair timeframe for any benchmarking) or since the inception of Alpha Southeast Asia magazine in 2007, CIMB emerges right at the top. The leading bond house has raised US$124,512 million in equivalent local currency bonds or 13.3% of all bond related financings in Southeast Asia between 1 June 2007 and 30 November 2021. At a distance or 36% short of CIMB, we have DBS Bank (ranked #1 in Singapore & #2 in ASEAN) at US$80,439 million with 8.6% market share, thanks in large part due to the burgeoning development of the Islamic and conventional bond market in Malaysia over the last 15-20 years.

CIMB emerges at the top, having raised US$124,512 million in equivalent local currency bonds or 13.3% of all bond related financings in Southeast Asia between 1 June 2007 and 30 November 2021.

DBS Bank (ranked #1 in Singapore & #2 in ASEAN) with US$80,439 million or 8.6% market share

Maybank also comes in at within the top 5 position in Southeast Asia with US$57,479 million at 6.1% market share. In Thailand, Kasikornbank comes in at 7th position in Southeast Asia (or #1 in Thailand over a 15-year period) with US$40,474 million at 4.3%.

Kasikornbank comes in at 7th position in Southeast Asia (or #1 in Thailand over a 15-year period) with US$40,474 million at 4.3% market share

Ranked 15th in Southeast Asia (or #1 in Indonesia), Mandiri Sekuritas is credited with US$12,179 million or 1.3% worth of DCM related deals in Southeast Asia.  In the Philippines, BDO Capital, ranked 17th (or #1 in the Philippines) emerges as the top bond house in the Philippines, over a 15-year period, with US$7,899 million or 0.8% of all bond market deals across Southeast Asia.

Ranked 15th in Southeast Asia (or #1 in Indonesia), Mandiri Sekuritas is credited with US$12,179 million

BDO Capital, ranked 17th (or #1 in the Philippines) emerges as the top bond house in the Philippines over a 15-year period, with US$7,899 million

BEST HOUSES FOR SUKUKS (OVER A 15-YEAR PERIOD)

For Sukuks in Malaysia, a similar picture emerges.

CIMB has raised RM266,331 million or nearly one-third of the entire amount raised in the last 15 years, with a 32.6% market share or 499 Sukuks.

Just as notably, Maybank has raised RM164,925 million or 20.2% via 410 Sukuks. RHB meanwhile is ranked 3rd at RM112,699 million with a 13.9% market share via 392 Sukuks while AmInvestment Bank is close at RM104,501 million with a 12.8% market share via 308 Sukuks, mirroring the yearly performances of the respective league tables in Malaysia.

Nonetheless, successful bond issuances understandably have more to do with  only league table rankings. From quality of credit research to track record of innovation, awards recognition to managing key relationships with key credits, let alone the contentious issue of fees, a range of factors are often involved.

EQUITY CAPITAL MARKETS

Meanwhile, analysing equity league tables is a bit more difficult. Equity mandates are often driven by a whole of sleuth of factors including pre-IPO financing (if any), pre-IPO research, investor distribution network, range of equity awards let alone league table rankings, if not also, quoted fees for underwriting a given equity deal, large or small.

Top 5 ECM Houses in Indonesia 2021

Period: 1 Dec 2020 to 30 Nov 2021 Source: Refintiv

In Indonesia, a little-known securities house, Indo Capital emerged as the #1 player in the local capital markets in 2021 with a whopping 31.3% market share, or 5 ECM deals worth IDR4,034,781 million in total. Ranked number two is BCA Sekuritas at IDR1,687,230 million with a 13.1% market share. Historically ranked in the top 3-5 position, Mandiri Sekuritas is ranked #9 this year. Meanwhile, BRI Danareksa is ranked#13, an unusual anomaly unlike another.


Top 5 ECM Houses in the Philippines 2021

Period: 1 Dec 2020 to 30 Nov 2021 Source: Refintiv

In the Philippines, a number of foreign banks are usually featured within the top 10 ECM space with UBS at the pole position. Two local players are however always  interchangeably  hovering near the top with BDO ranked #2 with a 19% market share while BPI is ranked #3 at 13.4%.


Top 5 Houses in Thailand 2021

Period: 1 Dec 2020 to 30 Nov 2021 Source: Refintiv

Thailand is another market with a  fairly active roster of foreign banks, thanks in large part to bumper equity deals requiring sizeable equity investments and thus, foreign investor participation, a key selling point for global investment banks.

While Kiatnakin Phatra is ranked #1 with a 18.2% market share given its unequivocal reach or THB29,184 million in ECM deals, UBS and Morgan Stanley are ranked 2nd and 3rd while Kasikornbank is ranked 4th and Bualuang Securities is ranked 5th. Siam Commercial Bank that usually features near the top, is ranked 8th this year, with THB7533 million or with a 4.7% market share.


Top 5 ECM Houses in Singapore 2021

Period: 1 Dec 2020 to 30 Nov 2021 Source: Refintiv

In Singapore, the top 3 players that accounted for 60.1% of the market share this year was shared between JPMorgan, Goldman Sachs and BofA Securities. DBS Bank which has a strong ECM franchise is ranked #4 with a 11.4% market share.


Top 5 ECM Houses in Malaysia 2021

Period: 1 Dec 2020 to 30 Nov 2021 Source: Refintiv

In Malaysia, Maybank completed 10 equity related deals, firmly securing 17.6% in market share or RM3,607 million. CIMB historically near the top found itself ranked #5 with a 9% market share or RM1,880 million in ECM related issues, or at half of its local rival.


Top 10 ECM Houses 2021

Period: 1 Dec 2020 to 30 Nov 2021 Source: Refintiv

TOP 10 ECM HOUSES IN SOUTHEAST ASIA (OVER A 15-YEAR PERIOD)

Period: 1 June 2007 and 30 November 2021 Source: Refinitv

What is however interesting once again, is when ECM league tables are collectively viewed across Southeast Asia in USD equivalent, across a 15-year horizon.

JPMorgan, UBS and Credit Suisse put together have been responsible for 23.4% of the market share over the last 15 years, or nearly one-fourth of all ECM related deals in Southeast Asia.

CIMB meanwhile has edged its way near the top, ranked a respectable 4th with US$24,096 million or 289 ECM deals in total.

DBS Bank in Singapore is close by, ranked#5 with US$22,048 million worth of transactions across 227 ECM deals.

In Thailand, Kiatnakin Phatra is ranked #12 across Southeast Asia (or #1 in Thailand) with US$9,841 million worth of ECM deals or 44 deals in grand total over a 15-year period, summing up how important it is sometimes to view league tables across a wider time horizon rather than year-to-year basis.

Source: Refinitiv