CDPCs To Prompt Tranche Migration

The launch of credit derivative product companies in the New Year is expected to shift the demand for synthetic risk up the capital structure.

  • 15 Dec 2006
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The launch of credit derivative product companies in the New Year is expected to shift the demand for synthetic risk up the capital structure. CDPCs are permanent capital vehicles and similar to monoline insurers. They are expected to be a permanent buyer of risk--seller of protection--at all tranche levels, but especially senior.

Strategists are also tipping the vehicles to sell senior protection beyond five-year maturities, where spreads have already been compressed by leveraged super senior issuance. The seven-year part of the curve is currently trading cheap to the more popular five-year tenor and is due for a rally, said Ashish Shah credit strategist atLehman Brothers in New York.

"So far, senior tranches in the longer maturities have displayed their usual sticky nature," said Shah, explaining, "They have been trading in a range for the past three months despite the aggressive tightening of the underlying indices." Goldman Sachs is said to have just printed a synthetic CDO that sells seven-year investment grade protection at the senior level. Goldman officials did not comment by press time.

  • 15 Dec 2006

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 358,291.38 1348 9.06%
2 JPMorgan 320,704.66 1461 8.11%
3 Bank of America Merrill Lynch 318,128.31 1104 8.04%
4 Goldman Sachs 236,643.87 789 5.98%
5 Barclays 231,197.41 895 5.84%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 35,007.57 165 6.53%
2 Deutsche Bank 34,880.53 120 6.51%
3 Bank of America Merrill Lynch 31,805.65 97 5.93%
4 BNP Paribas 27,920.60 169 5.21%
5 SG Corporate & Investment Banking 24,398.89 138 4.55%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 19,745.92 80 8.85%
2 Morgan Stanley 16,334.63 83 7.32%
3 Citi 15,972.34 95 7.16%
4 UBS 15,487.17 60 6.94%
5 Goldman Sachs 14,053.61 76 6.30%