In the investment grade market, borrowers returned en masse to refinance their multi-year credits, pushing volume to $242 billion in the second quarter. That figure represents a tripling of the volume generated in the first quarter of 2004 and a 50% increase over the year-earlier period.

"The jump in investment grade lending was fueled by a surge in competition, which allowed borrowers to refinance their loans on attractive terms," says Jim Davis, President and CEO of LPC. "High-grade companies took advantage of market sentiment to extend their loan tenors dramatically."

The leveraged and institutional loan markets (loans sold to non-bank investors) posted substantial jumps in volume as well. While leveraged lending climbed to a record $127 billion, institutional issuance soared past $56 billion, by far the strongest quarter on record. Moreover, LBO activity surpassed $20 billion - cementing the highest volume generated in a quarter since the late 1980s.

So, who led most of the loans in the first half of 2004? J.P. Morgan was the leading bank loan lender in the first half, arranging $196.93 billion. Bank of America was second in overall lending, with $128.30 billion, followed by Citigroup ($90.07 billion), Wachovia Securities ($36.82 billion), and BANK ONE Corp. ($32.59 billion). On a pro forma combined basis, J.P. Morgan and BANK ONE led $229.52 billion in loans. Their merger is effective July 1, 2004.

Rank	Bank Holding Company	Lead Arranger Volume	# of deals	Market Share
1	J.P. Morgan	$196,929,560,717	303	31%
2	Bank of America	128,301,323,253	470	20%
3	Citigroup	90,070,491,671	170	14%
4	Wachovia Securities	36,822,191,187	185	6%
5	BANK ONE Corp.	32,593,640,514	159	5%
6	Credit Suisse First Boston	19,932,693,262	82	3%
7	Deutsche Bank	19,060,967,705	58	3%
8	Wells Fargo & Co.	10,321,231,672	73	2%
9	Bank of New York Co.	8,763,120,685	41	1%
10	Barclays Bank Plc	8,109,700,000	18	1%

Bank of America grabbed the top spot in LPC's Leveraged League Table, posting $43.56 billion in the first half of 2004. J.P. Morgan finished second in terms of leveraged lending, with $30.39 billion, followed by Credit Suisse First Boston ($18.04 billion), Wachovia Securities ($17.74 billion), and Deutsche Bank ($16.91 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	$43,559,987,446	272	21%
2	J.P. Morgan	30,394,924,910	111	14%
3	Credit Suisse First Boston	18,040,193,262	75	9%
4	Wachovia Securities	17,744,535,187	110	8%
5	Deutsche Bank	16,905,717,705	50	8%
6	Citigroup	16,423,141,671	58	8%
7	BANK ONE Corp.	7,165,350,514	72	3%
8	Goldman Sachs & Co.	5,647,818,921	32	3%
9	Wells Fargo & Co.	4,963,680,672	48	2%
10	Morgan Stanley	4,804,629,150	16	2%

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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