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
  • 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%