Summary: April marked the tenth straight month of YoY declines for total
global debt volumes and total U.S. debt volumes, the greatest consecutive
decline since 1990. Not only is the length of contraction of 10 months and
counting remarkable but so too is the severity.
• The last period of prolonged period of YoY declines was back in May 2000
with that month marking the seventh month of consecutive YoY declines in
global debt volumes and eighth month of consecutive YoY declines in U.S.
debt volumes. A positive note was that the 5% YoY decline in global debt
underwriting in April fared better than the nine prior months of double-digit
YoY declines but U.S. debt issuance remained down over 40% YoY. Debt
underwriting activity was driven primarily by the investment grade corporate
bond issuance with continued weakness in the ABS and MBS markets.
• The equity capital markets activity was weak with trading volumes down on
a YoY basis. M&A completed deals, but more importantly announced
deals, were both off more than 40% in the U.S. and in Europe. Global
indices recovered some of this year's losses in April.
• In April, global debt underwriting volume (US$) was down 5% YoY but up
73% MoM to $354.9 billion. Global equity underwriting volume was down
20% YoY and down 4% MoM to roughly $60 billion. Global M&A
announced deal volume (US$) was down 54% YoY and down 1% MoM to
roughly $261.1 billion. Global M&A completed deal volume (US$) was
down 42% YoY and down 39% MoM to roughly $224.5 billion.
• We continue to believe that high margin structured products will not return
in any material form this year and that such will create serious revenue
replacement issues. From the lost revenue, the issue of excess capacity
becomes relevant and ultimately further disruption vis a vis restructuring for
the brokers.

April 2008 Capital Markets Activity Report
Investment Thesis
April marked the tenth straight month of YoY declines for total global debt volumes and total U.S.
debt volumes, the greatest consecutive decline since 1990. Not only is the length of contraction of
10 months and counting remarkable but so too is the severity. The last period of prolonged period
of YoY declines was back in May 2000 with that month marking the seventh month of consecutive
YoY declines in global debt volumes and eighth month of consecutive YoY declines in U.S. debt
volumes. A positive note was that the 5% YoY decline in global debt underwriting in April fared
better than the nine prior months of double-digit YoY declines but U.S. debt issuance remained
down over 40% YoY. Debt underwriting activity was driven primarily by the investment grade
corporate bond issuance with continued weakness in the ABS and MBS markets.
The equity capital markets activity was weak with trading volumes down on a YoY basis. M&A
completed deals, but more importantly announced deals, were both off more than 40% in the U.S.
and in Europe. Global indices recovered some of this year’s losses in April.
We continue to believe that high margin structured products will not return in any material form this
year and that such will create serious revenue replacement issues. From the lost revenue, the
issue of excess capacity becomes relevant and ultimately further disruption vis a vis restructuring
for the brokers.
In April, total global debt underwriting volume (US$) was down 5% YoY but up 73% MoM to
$354.9 billion. This was the tenth straight month of YoY decreases and in the past 13 months.
This was also the first single digit YoY decline after nine consecutive double-digit YoY declines.
The debt issuance activity in month of April was driven primarily by investment grade corporate
bond issuances. U.S. debt underwriting volume fell 42% YoY but rose 37% MoM to $128 billion.
Outside the U.S., debt underwriting actually increased YoY. European debt volumes rose 43%
YoY and 101% MoM to $182.6 billion. Latin America debt volumes rose 37% YoY and 12% MoM
to $4.9 billion. Asia ex-Japan debt volumes rose 43% YoY and 42% MoM to $28.5 billion. Japan
debt volumes rose 18% YoY and 166% MoM to $15.7 billion.
In April, total global equity underwriting volume was down 20% YoY and down 4% MoM to
roughly $60 billion. Four of the top five issues in April were primarily follow-on offerings by U.S.
financial institutions. U.S. equity underwriting rose by 67% YoY and 8% MoM to $29.4 billion.
European equity underwriting decreased by 56% YoY and 34% MoM to roughly $10.2 billion.
Latin America equity underwriting fell by 32% YoY but rose 211% MoM to roughly $3.4 billion. Asia
ex-Japan equity underwriting fell by 51% YoY and 19% MoM to roughly $11.5 billion. Japan equity
underwriting fell 89% YoY and fell 80% MoM to roughly $147 million.
In April, total global M&A announced deal volume (US$) was down 54% YoY and down 1%
MoM to roughly $261.1 billion. U.S. M&A announced deal volume fell 43% YoY but rose 146%
MoM to $108 billion. European M&A announced deal volume fell 73% YoY and 36% MoM to
$77.5 billion. Latin America M&A announced deal volume rose 2% YoY but fell 62% MoM to $8.8
billion. Asia ex-Japan M&A announced deal volume rose 4% YoY and 10% MoM to $49.4 billion.
Japan M&A announced deal volume fell 55% YoY and 68% MoM to $6.3 billion.
In April, total global M&A completed deal volume (US$) was down 42% YoY and down 39%
MoM to roughly $224.5 billion. U.S. M&A completed deal volume decreased by 49% YoY and
71% MoM to $52.9 billion. European M&A completed deal volume fell 40% YoY, but rose 1%
MoM to $117 billion. Latin America M&A completed deal volume rose 246% YoY and 232% MoM
to $7.9 billion. Asia ex-Japan M&A completed deal volume fell 36% YoY and 22% MoM to $26.2
billion. Japan M&A completed deal volume fell 47% YoY and 40% MoM to $15.6 billion