Credit Options Multiply Ten-Fold

The credit options market in Europe has grown 10-fold through the end of the third quarter, driven by growing investor preference to take short-term views on underlyings rather than buying a bond or selling credit protection.

  • 07 Oct 2005
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The credit options market in Europe has grown 10-fold through the end of the third quarter, driven by growing investor preference to take short-term views on underlyings rather than buying a bond or selling credit protection. A small group of sophisticated credit investors are also using the instruments for pure volatility trading, betting on changes in implied volatility of the iTraxx index.

Daniel Berman, credit products manger at JPMorgan in London, said his firm has traded USD25 billion in notional since January. "Credit options have definitely been the biggest news in the flow space this year," Berman said, adding he expects volumes to again swell in the fourth quarter. Traders at firms including The Royal Bank of Scotland, Barclays Capital and ABN AMRO have also reported a boom in trading volumes.

The majority of credit options are bets on the iTraxx or CDX indices, but the number of trades which reference single names is climbing, according to market players. High-yield U.S. names including autos and airlines are currently the most liquid.

  • 07 Oct 2005

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 357,043.08 1340 9.06%
2 JPMorgan 319,078.96 1445 8.09%
3 Bank of America Merrill Lynch 316,666.04 1099 8.03%
4 Goldman Sachs 236,643.87 789 6.00%
5 Barclays 230,494.28 891 5.85%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 34,591.50 163 6.58%
2 Deutsche Bank 34,293.84 117 6.53%
3 Bank of America Merrill Lynch 31,293.04 95 5.96%
4 BNP Paribas 27,578.61 168 5.25%
5 SG Corporate & Investment Banking 23,982.83 136 4.56%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 19,745.92 80 8.86%
2 Morgan Stanley 16,323.54 83 7.32%
3 Citi 15,946.50 94 7.15%
4 UBS 15,487.17 60 6.95%
5 Goldman Sachs 14,053.61 76 6.30%