Emerging Mart Liquidity Hits Tight-Spread Barrier

  • 09 May 2006
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A liquid market for emerging-market collateralized debt obligation tranches is yet to materialize because tight spreads are stunting the number of deals being printed. "There is not the appetite for CDOs because compared to high-yield and crossover, spreads are too tight," said one London-based structurer. The price of protection on the CDX EM diversified, which comprises 40 equally-weighted sovereigns and corporates, is around 88 basis points, compared to 292 bps for the CDX North American High Yield index.
One European emerging-market fund manager said he uses the implied correlation of the index to track the performance of his investments, but has held off using the tranches to hedge. "The correlation between the index and our portfolio is not very high," he explained. "It's not putting our cash to good use."
  • 09 May 2006

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 280,265.07 1033 8.97%
2 JPMorgan 255,894.98 1165 8.19%
3 Bank of America Merrill Lynch 248,918.80 861 7.97%
4 Goldman Sachs 192,023.30 615 6.15%
5 Barclays 183,846.60 703 5.89%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 28,458.91 116 7.05%
2 Deutsche Bank 26,902.99 90 6.66%
3 Bank of America Merrill Lynch 24,997.04 70 6.19%
4 BNP Paribas 21,217.62 120 5.25%
5 Credit Agricole CIB 19,454.23 112 4.82%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 13,671.74 61 7.87%
2 Citi 12,076.06 76 6.95%
3 Morgan Stanley 11,899.85 66 6.85%
4 UBS 11,800.30 47 6.80%
5 Goldman Sachs 11,111.93 58 6.40%