Tobacco Giant CDS May Face Orphaning Woes

A business reorganization at U.S. cigarette maker Altria may see debt retired and credit protection holders with worthless contracts--a phenomenon known as orphaning.

  • 14 Jul 2006
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A business reorganization at U.S. cigarette maker Altria may see debt retired and credit protection holders with worthless contracts--a phenomenon known as orphaning. Traders said players long protection/short Altria bonds are closely following discussions the company may split into three entities.

Last Friday, it looked likely Altria would break away from subsidiary Kraft Foods as well as demerge its tobacco business into Philip Morris USA and Philip Morris International. While Kraft CDS already trade as stand-alone debt, it is unclear how Altria debt will be divided or restructured. "This would likely be a succession issue," said one trading official.

A surge in corporate take-over activity has highlighted CDS orphaning problems in the last few months (DW, 5/5). The International Swaps and Derivatives Association has been hosting dealer discussions on the issue with a view to drafting a supplement to the 2003 credit derivative definitions which will amend so-called successor language.

  • 14 Jul 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
  • Today
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%