U.S. Pension Funds Dive Into Rate Swaps

U.S. pension funds are jumping into interest rate swaps this quarter.

  • 06 May 2005
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U.S. pension funds are jumping into interest rate swaps this quarter. Traders said a combination of rising interest rates and continued poor equity performance is driving the funds to manage their liabilities through swaps rather than rely on their assets to grow.

"We have seen half a dozen or so large pension funds begin executing or authorizing execution of swap programs," said Robert Leary, a managing director with AIG Financial Products and marketer of over-the-counter products in Wilton, Conn. "We expect to see a significant increase in these type of swap programs by corporate pension funds as rates rise," he added. He has seen a flurry of activity since March, when funds began implementing strategies agreed upon by investment committees in first quarter meetings. Pension funds tend to use 10, 20 or 30-year swaps, he added. Rate swap programs piqued the interest of European funds last autumn in view of European Union accounting changes (DW, 10/1).

  • 06 May 2005

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 318,645.99 1207 8.88%
2 JPMorgan 291,870.93 1330 8.14%
3 Bank of America Merrill Lynch 285,392.08 993 7.95%
4 Goldman Sachs 218,480.36 718 6.09%
5 Barclays 210,235.01 814 5.86%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 33,092.37 151 6.77%
2 Deutsche Bank 33,007.84 106 6.75%
3 Bank of America Merrill Lynch 29,018.73 86 5.94%
4 BNP Paribas 25,718.39 146 5.26%
5 Credit Agricole CIB 22,722.30 133 4.65%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 18,707.17 72 9.33%
2 Morgan Stanley 15,215.44 76 7.59%
3 UBS 14,195.29 55 7.08%
4 Citi 14,014.57 86 6.99%
5 Goldman Sachs 12,113.98 67 6.04%