Over the last three years, Euro-equities have moved from being an obscure part of the Euromarkets to being one of its most dynamic sectors. The value and volume of Euro-equity issues is doubling every year and, for the first time, American investment banks are making serious inroads into the traditional European domination of the market.
Until this year, well-established European institutions such as Swiss Bank Corporation International, Credit Suisse First Boston and Union Bank of Switzerland, which relied on their Eurobond syndication skills and inhouse placing capacity, dominated the new issues market. But, increasingly, major American financial institutions are posing a challenge.
The relative newcomers to the market are Merrill Lynch, Morgan Stanley, Shearson Lehman and Salomon Brothers. All preach the importance of research and global placing power.
Of the 41 deals worth a total of $3.4 billion done in the first half of 1986, 18 were led by the Swiss banks and 15 by the Americans, assuring them seven of the top league table positions. A third of the Swiss mandates came from Swiss firms, while two thirds of the 15 American mandates came from US corporations.
Historically, US companies have scorned Euro-equity offerings, the technique by which shares are placed abroad through a separate international syndicate.