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
  • Today
1 Citi 353,377.35 1327 9.07%
2 JPMorgan 316,733.86 1438 8.13%
3 Bank of America Merrill Lynch 316,098.84 1095 8.11%
4 Goldman Sachs 234,493.12 778 6.02%
5 Barclays 226,573.92 880 5.82%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 34,312.86 161 6.57%
2 Deutsche Bank 34,194.98 116 6.55%
3 Bank of America Merrill Lynch 31,113.25 94 5.96%
4 BNP Paribas 27,479.75 167 5.26%
5 SG Corporate & Investment Banking 23,982.83 136 4.59%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 19,536.02 78 8.89%
2 Morgan Stanley 16,323.54 83 7.43%
3 Citi 15,750.21 93 7.17%
4 UBS 15,208.47 58 6.92%
5 Goldman Sachs 13,499.48 73 6.15%