Unlocking Efficiency in Capital Markets: What Every Issuer and Banker Needs to Know

Capital markets are evolving at rapid speed. For issuers, underwriters, and investors, the pressure to raise capital efficiently, pitch with precision, and benchmark performance has never been higher. Yet, the challenges remain universal—regardless of whether you’re working in municipal bonds, corporate debt, or equity capital markets. In the latest episode of "A Capital Markets Conversation," hosts Chris Fenske and Carl James break down the core processes that drive capital markets success and reveal how analytics and data-driven tools are reshaping the landscape.

1. The Virtuous Circle: Pitch, Distribute, Benchmark—Then Repeat

At the heart of every capital markets transaction lies a virtuous circle. As Chris Fenske explains, the cycle begins with the pitch—where underwriters leverage tools and data to establish credibility, often through league tables and performance metrics. But the process doesn’t end with deal execution. Post-deal benchmarking and surveillance feed back into future pitches, allowing banks to showcase their track record and refine their targeting strategy.

Carl James highlights, “Post-deal benchmarking actually leads you back to pitching and winning. It’s a virtuous circle.” The ability to demonstrate past success and investor engagement is crucial for winning new mandates and building long-term relationships. The interplay between these elements creates a continuous feedback loop that drives efficiency and innovation.

2. Data-Driven Targeting: Making Every Pitch Count

In today’s competitive environment, investment banks face limited resources and time to pitch to issuers. Data science is now front and center in helping banks pinpoint the right targets—whether it’s identifying when debt needs refinancing by tracking maturity walls, or predicting equity follow-ons based on cash burn rates and historical market activity.

Chris Fenske notes, “Investment banks are deploying data science to find M&A targets, potential issuer targets, and predict equity follow-ons.” This approach not only maximizes banker efficiency but also increases the likelihood of successful deal origination. By leveraging advanced analytics, banks can focus their efforts on issuers most likely to tap the markets, driving higher conversion rates and client satisfaction.

3. Quality of Distribution: The Secret Sauce for Successful Deals

Distribution is more than just selling securities—it’s about matching the right investors to each deal. Carl James emphasizes the importance of investor quality, explaining that high-grade institutional investors tend to hold positions longer, reducing volatility and turnover. “If you have high-grade institutional investors, the volatility or turnover of holdings reduces massively. That is a strong indicator of success,” says James.

Roadshows and investor engagement data (“data exhaust”) are increasingly used to assess investor interest and allocation strategies. S&P Global Market Intelligence Big Dough data platform, for instance, enables banks to analyze investor holdings history and participation in prior deals, helping to tailor future distribution and maximize deal success.

4. Post-Deal Benchmarking: From Manual to Automated Performance Tracking

Benchmarking post-deal performance is critical for underwriters and issuers alike. Traditionally, this has been a manual, time-consuming process—tracking thousands of prices or spreads. Today, S&P Global Market Intelligence is developing automated solutions that allow banks to create portfolios of underwritten deals and tie daily stock prices or bond spreads to those investments.

Chris Fenske shares, “We’re working on underwriting benchmarking—showing which issuers supported performed the best, which underwriters are performing better in certain sectors.” This granular approach enables banks to evaluate their sector strengths, identify top-performing relationships, and refine their strategy for future deals. Monitoring performance after lockup periods and secondary market activity adds another layer of insight for both issuers and investors.

5. Wallet Share: The Internal Report Card Driving Strategy

For banks, success isn’t just about executing deals—it’s about maximizing wallet share. Benchmarking fee collection across debt and equity transactions informs strategic decisions, such as investing in research or recruiting talent to fill gaps. “Wallet share is something more and more clients are requesting from us. It’s their internal report card,” says Fenske.

By understanding their share of fees and market penetration, banks can set priorities for growth, allocate resources efficiently, and stay ahead of the competition. This internal benchmarking is becoming a cornerstone of strategic planning in capital markets.

Whether you’re seeking to enhance your pitch book, automate post-deal analysis, or gain deeper insight into investor behavior, S&P Global Market Intelligence is your partner for capital markets success.