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Twelve Months - an Eternity from a Credit Crunch: Lenders seek borrowers in downsizing market

NEW YORK, December 31, 2003--Despite lenders that desperately wanted to lend, syndicated loan volume fell for the third consecutive year, ending at $929 billion, according to Loan Pricing Corporation, a New York City-based firm that analyzes the global bank loan and high-yield bond markets.

While leveraged lending (loans to companies rated below investment grade) soared 24%, and lending by non-bank investors nearly doubled, investment grade borrowers were nowhere to be found. Through third quarter, investment-grade loan issuance trailed 2002's figures by more than 20%.

However, the investment grade market turned the corner in fourth quarter.

"As borrowers realized they were in the driver's seat, investment grade issuance climbed 15% above the levels posted in 2002," notes Jim Davis, President of Loan Pricing Corporation. "But it was too little, too late."

Investment grade loan issuance ended the year at $419 billion, down 17% from 2002 and off nearly 40% since its heyday in 2001.

So, who led most of the loans in this smaller market? Once again, J.P. Morgan was the leading bank loan lender in 2003, arranging $241.82 billion. Bank of America was second in overall lending, with $166.10 billion, followed by Citigroup ($142.22 billion), BANK ONE Corp. ($60.44 billion) and FleetBoston ($34.21 billion).

Loan Pricing Corporation’s 2003 Lead Arranger League Table


Rank	Bank Holding Company	Lead Arranger Volume	# of deals	Market Share

1	J.P. Morgan	241,823,553,684	501	26%
2	Bank of America	166,098,815,435	737	18%
3	Citigroup	142,220,889,658	290	15%
4	BANK ONE Corporation	60,441,455,706	317	7%
5	FleetBoston	34,205,336,808	192	4%
6	Deutsche Bank	33,702,439,744	119	4%
7	Wachovia Securities	30,766,113,000	209	3%
8	Credit Suisse First Boston	24,618,185,704	91	3%
9	Barclays Bank Plc	17,115,199,589	33	2%
10	Wells Fargo & Company	15,806,047,725	154	2%

Bank of America grabbed the top spot in LPC's Leveraged League Table, posting $57.62 billion in 2003. J.P. Morgan finished second in terms of leveraged lending, with $55.11 billion, followed by Citigroup ($26.49 billion), Deutsche Bank ($22.88 billion) and Credit Suisse First Boston ($20.70 billion). Leveraged loans, which often back M&A transactions and leveraged buyouts, have been prized by banks because of the hefty interest rates and fees often paid by borrowers on those loans and related business.

Loan Pricing Corporation’s 2003 Leveraged Lead Arranger League Table


Rank	Bank Holding Company	Lead Arranger Volume	# of deals	Market Share

1	Bank of America	57,621,789,358	413	18%
2	JPMorgan	55,113,828,624	224	17%
3	Citigroup	26,488,904,610	92	8%
4	Deutsche Bank	22,881,314,744	95	7%
5	Credit Suisse First Boston	20,698,185,704	81	6%
6	FleetBoston	20,021,436,809	127	6%
7	Wachovia Securities	14,690,448,000	122	4%
8	BANK ONE Corporation	11,075,724,041	127	3%
9	Wells Fargo & Company	10,185,097,725	103	3%
10	General Electric Capital Corp.	10,130,625,027	83	3%

About Loan Pricing Corporation
Since 1985 Loan Pricing Corporation (LPC) (www.loanpricing.com), a Reuters Company, has provided market players around the world with the most complete and accurate news, data and analytics on bank loans. LPC's coverage spans the United States, Europe (EMEA), Latin America and the Asia-Pacific via subsidiary Basis Point Publishing Limited.

LPC's content is delivered via publications, on-line services and databases. LPC is the premier global provider of loan market information and analysis as a result of its in-depth focus on the loan industry and development of state-of-the-art products and services for bankers, borrowers and loan investors.

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