Emerging-Market Funds Pique Structuring Interest

Hedge funds investing in emerging markets are the latest hot sector for fund-linked structurers.

  • 27 Oct 2006
Email a colleague
Request a PDF

Hedge funds investing in emerging markets are the latest hot sector for fund-linked structurers. Emerging-market funds are attractive to investors, explained one London-based structurer, because of the potential for high returns. The volatility levels, however, can dissuade investors from investing directly in the funds, so they are looking at capital-protected notes that reference the funds via options or constant proportion portfolio insurance.

The Credit Suisse/Tremont Hedge Fund Index emerging market sector has a year-to-date yield of 10.2% compared with the broader index at 7.64%. Hedge fund firms such as BlueBay Asset Management that run emerging-market funds have been looking at offering capital-protected versions globally (DW, 9/15), but the volatility of these funds can make it expensive to write capital protection.

ABN AMRO in Europe has reportedly just offered a capital-protected note linked to an in-house emerging-market fund. It is likely the structurers were given good liquidity and some indication of the fund's positions, to lower the cost of protecting the fund. Officials at the Dutch house declined comment.

  • 27 Oct 2006

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 13 Mar 2017
1 JPMorgan 94,925.33 384 8.39%
2 Citi 87,531.58 331 7.74%
3 Bank of America Merrill Lynch 84,341.49 288 7.46%
4 Barclays 75,288.19 241 6.66%
5 Goldman Sachs 68,504.71 208 6.06%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 16 May 2017
1 Deutsche Bank 19,381.65 47 8.82%
2 Bank of America Merrill Lynch 18,968.25 36 8.63%
3 HSBC 18,103.95 50 8.24%
4 BNP Paribas 8,911.57 55 4.05%
5 SG Corporate & Investment Banking 8,885.00 54 4.04%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 23 May 2017
1 JPMorgan 8,714.26 35 8.36%
2 UBS 8,283.47 33 7.95%
3 Goldman Sachs 7,736.57 37 7.42%
4 Citi 6,897.11 46 6.62%
5 Bank of America Merrill Lynch 6,215.31 24 5.96%