Investment banks have earned more from helping companies go public and sell shares in the United States this year compared to the last, even as political and economic headwinds limited opportunities. According to data from the London Stock Exchange Group Plc, fees from underwriting initial public offerings (IPOs), follow-on stock sales, and convertible bond offerings for US-listed companies reached $8.78 billion for the year through December 2. This figure has already surpassed the $8.06 billion collected in the entirety of 2024.
A Year of Narrow Windows and High-Speed Deals
Bankers faced a challenging environment in 2025, with significant periods lost to market uncertainty. Mangesh Ghogre, founder of New York-based One Capita Advisors and former head of equity capital markets at Nomura Holdings Inc.'s India unit, pointed to the dual impact of tariff tensions and a federal government shutdown. The shutdown halted some functions of the US Securities and Exchange Commission (SEC), crucial for approving new deals. Ghogre estimated that about a quarter of the year was effectively lost for dealmakers. "With fewer windows, the car, so to speak, was running on three tires this year," he remarked.
Convertible Bonds and SPACs Fuel the Fee Rebound
Despite the hurdles, two areas saw explosive growth. The market for convertible bonds—debt that can be exchanged for stock—experienced a record year. A combination of relatively high interest rates, soaring equity prices, and elevated single-stock volatility made these instruments particularly attractive for companies seeking low-cost capital. Fees from convertible bond issuance jumped 46% to $2.38 billion, making it the fastest-growing segment. Major deals included two-part offerings from artificial intelligence data center operator Nebius Group NV and cryptocurrency exchange Coinbase Global Inc.
Meanwhile, the IPO market was bolstered by a substantial pickup in listings by Special Purpose Acquisition Companies (SPACs), or blank-check firms. A decent stretch of open markets from June to September also helped. Banks generated $2.45 billion in fees from US-traded IPOs, a nearly 13% increase from 2024. Notable listings included gas exporter Venture Global Inc, payments firm Klarna Group Plc, and AI infrastructure company CoreWeave Inc.
Sector Leaders and a Look Ahead to 2026
The largest source of fees remained sales of shares in already-listed companies, though this segment brought in $3.94 billion, trailing last year's haul by 7%. The biggest single stock sale of the year was Toronto-Dominion Bank's $13.1 billion sell-down of its stake in Charles Schwab Corp. in February. In terms of sectors, financials (including SPAC IPOs) and technology led in fee generation. Healthcare, last year's busiest sector, was held back by policy uncertainty in Washington.
While 2025's fees are modestly higher than 2024's, they remain well below the peak of $20.4 billion seen in 2021's easy-money era. However, with the government shutdown now pushing some activity into the next year, bankers are optimistic. Ghogre predicts a stronger 2026, especially if expected interest rate cuts materialize. "The highway could turn into a runway in 2026 given expected interest rate cuts and assuming the full year will be available," he said.
