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
  • 18 Jul 2017
1 Citi 244,235.70 910 8.87%
2 JPMorgan 223,767.95 1021 8.13%
3 Bank of America Merrill Lynch 211,276.97 750 7.68%
4 Barclays 166,062.82 634 6.03%
5 Goldman Sachs 162,877.27 537 5.92%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 25,385.87 103 7.10%
2 Deutsche Bank 25,125.19 81 7.03%
3 Bank of America Merrill Lynch 22,023.57 59 6.16%
4 BNP Paribas 18,766.65 109 5.25%
5 Credit Agricole CIB 18,157.63 105 5.08%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 18 Jul 2017
1 JPMorgan 12,578.87 55 8.17%
2 Citi 11,338.07 71 7.36%
3 UBS 10,682.06 44 6.93%
4 Goldman Sachs 10,419.53 53 6.76%
5 Morgan Stanley 10,194.88 57 6.62%