OTC Buy-Write Strategies Pick Up

  • 07 Feb 2006
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Over-the-counter buy-write strategies, in which investors buy equity indices and sell covered calls on the single stocks, have become increasingly popular in the U.S. Buy-write plays work best in falling or flat markets, cushioning downside moves and lessening overall volatility.

The strategy is primarily exchange-traded, but growing in over-the-counter popularity. "Fund managers are quietly using the OTC market to avoid volatility and get better execution on expiration Fridays," one official said.

Buy-write indices, such as the Chicago Board Options Exchange's BXM, BXD and BXN, measure the performance of a theoretical portfolio of stocks indexed to the Standard & Poor's 500, Dow Jones Industrial or NASDAQ100 indices, respectively (DW, 10/14). Covered calls generate two streams of income: dividend and call premium. Keith Styrcula, founder of the Structured Products Association, said options on buy-write indices helped the Chicago Board Options Exchange see record volumes last year.
  • 07 Feb 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%