CMBS Dealers Turn To CDX Index For Hedging

Several commercial mortgage-backed securities dealers are starting to hedge a portion of their portfolios using the Dow Jones CDX index.

  • 06 May 2005
Email a colleague
Request a PDF

Several commercial mortgage-backed securities dealers are starting to hedge a portion of their portfolios using the Dow Jones CDX index. "We believe that the liquidity, transparency and diversification of the CDX index make it, at times, an attractive hedging tool for the CMBS dealer community," said Roger Lehman, director of CMBS research at Merrill Lynch.

Although swaps have been the most prevalent hedge for the CMBS industry for five or more years, swaps don't have as much of a credit component as corporate bonds and dealers may want to hedge against a specific credit event, Lehman said. CMBS dealers began using credit default swap and total return swaps last year and hedge funds, portfolio managers and some broker-dealers have been using total return swaps on CMBS indices to hedge their portfolios for several years.

  • 06 May 2005

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 23 Jan 2017
1 Citi 35,941.13 111 8.93%
2 Barclays 31,588.47 86 7.85%
3 JPMorgan 27,799.55 107 6.91%
4 Bank of America Merrill Lynch 27,706.86 75 6.88%
5 HSBC 21,949.38 82 5.45%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 17 Jan 2017
1 Commerzbank Group 114.00 1 66.16%
2 CaixaBank 37.05 1 21.50%
3 UniCredit 10.62 1 6.17%
3 BNP Paribas 10.62 1 6.17%
Subtotal 172.30 3 100.00%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 17 Jan 2017
1 SG Corporate & Investment Banking 770.06 2 16.80%
2 Goldman Sachs 656.16 2 14.32%
3 JPMorgan 527.28 4 11.50%
4 Emirates NBD PJSC 408.38 1 8.91%
5 Deutsche Bank 321.53 3 7.01%