EM Credit Index Tightening Surprises

The CDX emerging markets index surprised traders by tightening to a three-month low last week, despite the escalating conflict in the Middle East.

  • 04 Aug 2006
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The CDX emerging markets index surprised traders by tightening to a three-month low last week, despite the escalating conflict in the Middle East. Five-year spreads tightened to 141 basis points Wednesday from 186 bps two weeks ago and 214 bps in June. Emerging markets credit derivative traders attributed the tightening to indications the U.S. Federal Reserve is nearly done tightening interest rates and the view that geopolitical risks--while making headlines--are under control.

"The market was positioned for disaster," said the head of one emerging markets trading desk. "It was very difficult not to be bearish the last few months. All you had to do was open the newspaper. But the markets were betting [the Middle East] would be less contained than it is." He added, however, "If [fighting] intensifies, all bets are off."

The conflict has even benefited big oil producers such as Brazil and Russia, which each make up 13% of the index, one trader noted. Five-year Brazil CDS tightened 60 bps since last month and Moody's Investors Service Monday indicated a potential upgrade.

  • 04 Aug 2006

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 24 Jul 2017
1 Citi 253,106.92 930 8.89%
2 JPMorgan 230,914.50 1036 8.11%
3 Bank of America Merrill Lynch 221,389.46 762 7.78%
4 Goldman Sachs 171,499.26 554 6.03%
5 Barclays 169,046.60 646 5.94%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 25 Jul 2017
1 HSBC 27,039.93 106 7.36%
2 Deutsche Bank 25,125.19 81 6.84%
3 Bank of America Merrill Lynch 23,128.33 61 6.29%
4 BNP Paribas 19,315.94 110 5.26%
5 Credit Agricole CIB 18,706.93 106 5.09%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 13,488.13 59 8.47%
2 Citi 11,496.21 73 7.22%
3 UBS 11,302.86 45 7.09%
4 Morgan Stanley 10,864.95 59 6.82%
5 Goldman Sachs 10,434.21 54 6.55%