CDO Trading Freedoms Tipped To Rise

The degree of trading flexibility given to third-party synthetic collateralized debt obligation managers is tipped to increase.

  • 05 May 2006
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The degree of trading flexibility given to third-party synthetic collateralized debt obligation managers is tipped to increase. Arrangers are looking to allow managers to use more long/short strategies and curve plays, such as steepeners, in underlying credit portfolios. "Dealer correlation desks are realizing straight forward portfolio constraints are not what the investment community is looking for any more," said one London-based credit structurer.

At present, the majority of managed CDOs only allow managers to trade out and substitute deteriorating credits. This may change, however, as the economic interests of managers and the performance of the underlying portfolio become increasingly aligned. "The higher the alignment of interest, the higher would be the manager's trading flexibility," wrote analysts at Fitch Ratings in a recent report.

  • 05 May 2006

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 358,291.38 1348 9.06%
2 JPMorgan 320,704.66 1461 8.11%
3 Bank of America Merrill Lynch 318,128.31 1104 8.04%
4 Goldman Sachs 236,643.87 789 5.98%
5 Barclays 231,197.41 895 5.84%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 35,007.57 165 6.53%
2 Deutsche Bank 34,880.53 120 6.51%
3 Bank of America Merrill Lynch 31,805.65 97 5.93%
4 BNP Paribas 27,920.60 169 5.21%
5 SG Corporate & Investment Banking 24,398.89 138 4.55%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 19,745.92 80 8.85%
2 Morgan Stanley 16,334.63 83 7.32%
3 Citi 15,972.34 95 7.16%
4 UBS 15,487.17 60 6.94%
5 Goldman Sachs 14,053.61 76 6.30%