Tranchelet Trading Picks Up

Tranchelet trading on the investment grade corporate CDX index has picked up in the past few weeks as dealers have looked to hedge issuance of bespoke collateralized debt obligations.

  • 20 Oct 2006
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Tranchelet trading on the investment grade corporate CDX index has picked up in the past few weeks as dealers have looked to hedge issuance of bespoke collateralized debt obligations. Tranchelets are very thin slices of index equity tranches which first hit the market as a risk management tool (DW, 1/6).

A handful of firms including Lehman Brothers, Merrill Lynch, Goldman Sachs, Morgan Stanley andJPMorgan are quoting two-way prices in the U.S., but tranchelet protection is predominately bought as a more precise way of hedging bespoke CDO issuance. "As more bespoke deals happen there is a need for bespoke desks to have a better finer hedging tool for these risks," said one dealer. Traders said tranchelets are not often traded on a speculative basis due to uncertainty over correlation risks and sensitivities, although some hedge funds with large CDO books have made relative-value plays to capitalize from possible mispricing.

  • 20 Oct 2006

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 352,540.12 1323 9.09%
2 Bank of America Merrill Lynch 315,574.44 1093 8.13%
3 JPMorgan 314,826.88 1433 8.11%
4 Goldman Sachs 234,193.07 776 6.04%
5 Barclays 226,473.92 879 5.84%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 33,723.41 160 6.58%
2 Deutsche Bank 33,605.53 115 6.55%
3 Bank of America Merrill Lynch 30,523.81 93 5.95%
4 BNP Paribas 26,890.30 166 5.24%
5 SG Corporate & Investment Banking 23,393.38 135 4.56%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 15 Oct 2017
1 JPMorgan 19,536.02 78 8.92%
2 Morgan Stanley 16,323.54 83 7.45%
3 Citi 15,667.80 92 7.15%
4 UBS 15,208.47 58 6.94%
5 Goldman Sachs 13,487.36 72 6.16%