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
Email a colleague
Request a PDF

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
  • 13 Mar 2017
1 JPMorgan 94,925.33 384 8.39%
2 Citi 87,531.58 331 7.74%
3 Bank of America Merrill Lynch 84,341.49 288 7.46%
4 Barclays 75,288.19 241 6.66%
5 Goldman Sachs 68,504.71 208 6.06%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 16 May 2017
1 Deutsche Bank 19,381.65 47 8.82%
2 Bank of America Merrill Lynch 18,968.25 36 8.63%
3 HSBC 18,103.95 50 8.24%
4 BNP Paribas 8,911.57 55 4.05%
5 SG Corporate & Investment Banking 8,885.00 54 4.04%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 8,714.26 35 8.36%
2 UBS 8,283.47 33 7.95%
3 Goldman Sachs 7,736.57 37 7.42%
4 Citi 6,897.11 46 6.62%
5 Bank of America Merrill Lynch 6,215.31 24 5.96%