US Tops Equity Issuance

From Reuters comes an equity issuance story.  Given all the tension in the world, I am amazed at the markets appetite for new risk,

The United States drove global equity issuance in the first three months of the year, stealing Asia's crown, after a spate of blockbuster U.S. IPOs backed by private equity firms.

Despite a tumultuous final few weeks which saw unrest in the Middle East and a nuclear crisis in Japan rock worldwide stock markets, global equity issuance rose 12 percent to $189 billion in the first quarter, compared with the same period in 2010.

U.S. issuance accounted for $66.5 billion, or 35 percent, of the capital raised, according to Thomson Reuters data.

Asia in recent years has dominated equity fundraising. In the first quarter,China, excluding Hong Kong, was only the second most-active issuer, making up 15 percent of activity.

"What we are seeing is a decoupling, whereby the U.S. seems to be breaking out and surging ahead, leaving Europe in its wake," said Viswas Raghavan, head of international capital markets at JPMorgan Chase & Co in London.

"There seems to be greater confidence in the U.S. amid an emerging belief that the worst is behind them whereas in EMEA there are a lot of macro issues ... weighing on the market."

Four of the top 10 IPOs globally were the buyout-backed U.S. share floats of measurement firm Nielsen Holdings, Florida lender BankUnited Inc, pipeline company Kinder Morgan Inc and hospital operator HCA Holdings Inc. The U.S. also had large follow-on share sales by MetLife Inc and Fifth Third Bancorp

Private equity is monetizing their investments while the getting is good.  This should shorten the runway for exit strategies as long as the market remains accommodative. 

.