Rated First-To-Default Baskets Take Off In Japan

Firms in Tokyo have started seeing a pickup in demand for rated first-to-default baskets as an alternative to synthetic collateralized debt obligations in the tight-spread market.

  • 06 May 2005
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Firms in Tokyo have started seeing a pickup in demand for rated first-to-default baskets as an alternative to synthetic collateralized debt obligations in the tight-spread market. "[First-to-default baskets] are becoming more attractive," said Ichinori Kitahara, chief analyst in the structured finance ratings group at Ratings and Investment Information in Tokyo. He noted synthetic CDO issuance has slowed down to a trickle this year with only a handful of new deals, while the number of structures fell last year from 2003.

Market officials say there is particular demand for rated first-to-default baskets of Japanese names clients are familiar with. Credit structurers said one driving factor for such rated transactions is the upcoming Basel Capital Adequacy Accord in 2006, which is expected to lead a swing toward holding rated investments. "Clients such as regional banks in Japan are becoming more ratings-aware," said a credit structurer at Shinsei Bank in Tokyo, explaining under Basel, changes in risk-weightings for holding such products will be a greater incentive to hold rated instruments.

  • 06 May 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
  • Today
1 HSBC 25,935.16 104 7.16%
2 Deutsche Bank 25,125.19 81 6.94%
3 Bank of America Merrill Lynch 22,023.57 59 6.08%
4 BNP Paribas 19,315.94 110 5.34%
5 Credit Agricole CIB 18,706.93 106 5.17%

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%