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
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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
  • Today
1 Citi 315,565.94 1183 8.89%
2 JPMorgan 288,650.70 1316 8.13%
3 Bank of America Merrill Lynch 284,218.69 988 8.01%
4 Goldman Sachs 215,758.12 710 6.08%
5 Barclays 207,555.74 805 5.85%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
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1 HSBC 32,400.29 147 6.76%
2 Deutsche Bank 32,042.83 103 6.69%
3 Bank of America Merrill Lynch 28,820.43 84 6.02%
4 BNP Paribas 25,608.74 143 5.35%
5 Credit Agricole CIB 22,617.86 130 4.72%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 18,067.92 70 9.12%
2 Morgan Stanley 15,215.44 76 7.68%
3 UBS 14,195.29 55 7.17%
4 Citi 14,014.57 86 7.07%
5 Goldman Sachs 12,113.98 67 6.11%