The investment grade market, in particular, recovered spectacularly. In 2003, I-grade loan issuance hit only $419 billion, off nearly 40% from its 2001 peak. This year, however, issuance has already topped $80 billion, up 30% from first quarter 2003.

"High-grade borrowers realized that banks were eager to lend - and many took advantage of a favorable market to lock in longer-term debt," says Jim Davis, President and CEO of LPC. "This, coupled with the emergence of M&A activity, fueled the first quarter's robust investment grade loan issuance."

The institutional loan market (loans sold to non-bank investors) also generated strong volume in the first quarter. In fact, at $39.8 billion, this was both the second-largest quarter ever and by far the biggest first quarter on record. The institutional loan market is so hot that yesterday Warner Music, which is in market for a $1.45 billion loan backing the leveraged buyout by Thomas H. Lee, Edgar Bronfman, Jr.'s Lexa Partners, Bain Capital and Providence Equity Partners, downsized its bonds and increased its institutional loan from $1 billion to $1.2 billion. The company also reduced the loan spread by 9% to boot.

So, who led most of the loans in first quarter 2004? J.P. Morgan was the leading bank loan lender in the first quarter of 2004, arranging $45.86 billion. Bank of America was second in overall lending, with $31.40 billion, followed by Citigroup ($23.54 billion), BANK ONE Corp. ($16.80 billion) and Wachovia Securities ($12.93 billion).

Rank	Bank Holding Company	Lead Arranger Volume	# of deals	Market Share
1	J.P. Morgan	45,858,285,810	100	24%
2	Bank of America	31,396,679,100	155	16%
3	Citigroup	23,541,016,500	43	12%
4	BANK ONE Corporation	16,802,869,000	72	9%
5	Wachovia Securities	12,927,281,000	72	7%
6	Credit Suisse First Boston	8,184,973,450	40	4%
7	Deutsche Bank	7,528,232,528	27	4%
8	FleetBoston	5,862,287,090	33	3%
9	Scotia Capital	4,062,300,000	13	2%
10	Wells Fargo & Company	3,830,250,000	24	2%

Bank of America grabbed the top spot in LPC's Leveraged League Table, posting $12.08 billion in the first quarter of 2004. J.P. Morgan finished second in terms of leveraged lending, with $8.87 billion, followed by Wachovia Securities ($7.66 billion), Credit Suisse First Boston ($6.66 billion) and Deutsche Bank ($6.25 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.

Rank	Bank Holding Company	Lead Arranger Volume	# of deals	Market Share
1	Bank of America	12,084,679,100	99	16%
2	J.P. Morgan	8,866,985,810	43	12%
3	Wachovia Securities	7,659,989,000	48	10%
4	Credit Suisse First Boston	6,659,473,450	34	9%
5	Deutsche Bank	6,251,632,528	22	8%
6	Citigroup	4,589,066,500	18	6%
7	FleetBoston	3,252,287,090	24	4%
8	BANK ONE Corporation	2,919,814,000	33	4%
9	Lehman Brothers	2,299,700,000	13	3%
10	UBS AG	2,264,800,000	15	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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