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
Email a colleague
Request a PDF

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
  • 24 Jul 2017
1 Citi 253,106.92 930 8.89%
2 JPMorgan 230,914.50 1036 8.11%
3 Bank of America Merrill Lynch 221,389.46 762 7.78%
4 Goldman Sachs 171,499.26 554 6.03%
5 Barclays 169,046.60 646 5.94%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 25 Jul 2017
1 HSBC 27,039.93 106 7.36%
2 Deutsche Bank 25,125.19 81 6.84%
3 Bank of America Merrill Lynch 23,128.33 61 6.29%
4 BNP Paribas 19,315.94 110 5.26%
5 Credit Agricole CIB 18,706.93 106 5.09%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 25 Jul 2017
1 JPMorgan 13,488.13 59 8.47%
2 Citi 11,496.21 73 7.22%
3 UBS 11,302.86 45 7.09%
4 Morgan Stanley 10,864.95 59 6.82%
5 Goldman Sachs 10,434.21 54 6.55%