CPPI-Linked Credit Gains Ground In Japan

Credit derivative products incorporating constant proportion portfolio insurance are starting to make inroads in Japan, on the back of growing client comfort with the concept.

  • 31 Mar 2006
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Credit derivative products incorporating constant proportion portfolio insurance are starting to make inroads in Japan, on the back of growing client comfort with the concept. While European investors got familiar with CPPI by investing in capital-protected mutual funds and hedge funds, Japanese investors have tended to invest directly in the funds and therefore been more apprehensive when it comes to applying the strategy to credit.

Credit houses have been educating clients on strategies in recent months and a handful of deals have been completed. So far, both credit index-linked structures and managed credit strategies that employ CPPI have been sold in Japan. "It's still a marginal business, but after a track record is built up I expect this to really take off by the end of the year," said a credit head at a European house in Tokyo. He continued, however, that in addition to increasing awareness of the capital protection mechanism, when it becomes clearer what treatment such products will receive under the Basel II accords, there should be greater take-up from clients.

  • 31 Mar 2006

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
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  • Today
1 Citi 317,691.74 1201 8.90%
2 JPMorgan 291,227.96 1326 8.16%
3 Bank of America Merrill Lynch 285,088.11 991 7.99%
4 Goldman Sachs 217,749.25 714 6.10%
5 Barclays 209,291.80 811 5.87%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
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1 HSBC 32,320.82 147 6.67%
2 Deutsche Bank 32,259.50 104 6.66%
3 Bank of America Merrill Lynch 28,890.43 85 5.96%
4 BNP Paribas 25,663.29 144 5.30%
5 Credit Agricole CIB 22,617.86 130 4.67%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
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1 JPMorgan 18,160.85 71 9.15%
2 Morgan Stanley 15,215.44 76 7.67%
3 UBS 14,195.29 55 7.15%
4 Citi 14,014.57 86 7.06%
5 Goldman Sachs 12,113.98 67 6.10%