Investors underweight peripheral covered bonds, but squeezes likely

Covered bond investors have reduced their exposure to peripheral markets according to analysts at Commerzbank research. Despite this, peripheral and higher yielding covered bonds have continued to outperform and could easily remain susceptible to squeezes, traders warn. The technically squeezed status quo may not change until the second half of 2018, they added.

  • By Bill Thornhill
  • 01 Nov 2017

The iBoxx covered bond index is trading close to its historic tightest spread levels. “The trend of positive sentiment in the secondary market continued last week, with the overall iBoxx hitting a new post-CBPP3 low,” said ABN analyst Joost Beaumont, in a note to clients on Monday.

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Bookrunners of Global Covered Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 11,393.91 58 6.03%
2 UniCredit 9,509.62 74 5.03%
3 BNP Paribas 8,680.07 42 4.59%
4 Commerzbank Group 8,135.97 52 4.30%
5 LBBW 7,972.24 47 4.22%

Bookrunners of Global FIG

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Morgan Stanley 101,410.35 412 6.99%
2 Citi 94,194.69 538 6.50%
3 Goldman Sachs 93,150.36 489 6.42%
4 Bank of America Merrill Lynch 88,834.84 369 6.13%
5 JPMorgan 84,348.56 399 5.82%

Bookrunners of Dollar Denominated FIG

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 81,367.42 414 11.01%
2 Bank of America Merrill Lynch 71,836.87 313 9.72%
3 Goldman Sachs 71,718.82 411 9.70%
4 Morgan Stanley 70,784.40 302 9.58%
5 JPMorgan 70,596.97 307 9.55%

Bookrunners of Euro Denominated Covered Bond Above €500m

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 LBBW 5,605.63 20 6.35%
2 SG Corporate & Investment Banking 5,543.24 22 6.28%
3 BNP Paribas 5,467.55 18 6.20%
4 Credit Agricole CIB 5,313.69 20 6.02%
5 Commerzbank Group 4,949.16 20 5.61%

Global FIG Revenue

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 02 May 2016
1 Morgan Stanley 365.83 497 7.62%
2 JPMorgan 332.66 618 6.92%
3 Bank of America Merrill Lynch 299.89 590 6.24%
4 Goldman Sachs 276.71 375 5.76%
5 Citi 264.54 592 5.51%

Bookrunners of European Subordinated FIG

Rank Lead Manager Amount €m No of issues Share %
  • Last updated
  • Today
1 Barclays 9,461.63 27 12.77%
2 HSBC 8,882.01 36 11.99%
3 BNP Paribas 6,278.15 28 8.47%
4 Citi 4,542.03 36 6.13%
5 Credit Suisse 4,325.15 22 5.84%