Mart Prepares For Euro Decline On Referendum

Short-dated euro puts and U.S. dollar calls were in demand last week, in anticipation of a French rejection of the E.U. constitution in Sunday's referendum.

  • 27 May 2005
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Short-dated euro puts and U.S. dollar calls were in demand last week, in anticipation of a French rejection of the E.U. constitution in Sunday's referendum. In spot, the euro was already swooning against the greenback, falling to USD1.2583 last Tuesday from USD1.2633 the week before. One-month implied volatility fell to 8.26% from 8.47% as selling of vol exceeded buying.

Players were also looking to profit from an expected uptick in volatility over the referendum weekend. Some were selling Friday euro volatility and buying Monday vol, in a French referendum spread trade, according to Steve Bruner, fx analyst with JPMorgan in New York. One trader added players were selling volatility across the curve, from one-month out to one-year. "The whole curve has been heavy," he noted.

Andrew Chaveriat, fx analyst at BNP Paribas in New York, said the market has already priced in a French rejection of the constitution. "After the vote, we could get an opportunistic rebound of the euro," he said.

Still, analysts said other factors are driving the euro lower against the greenback, such as a report issued last week that business confidence in Germany, the E.U.'s largest economy, dropped for a fourth straight month. Traders prefer going long dollars, they added, because U.S. data has been favorable this month, signaling an improving U.S. economy and strengthening dollar.

  • 27 May 2005

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 16 Jan 2017
1 Citi 22,118.13 61 9.00%
2 Barclays 20,987.41 55 8.54%
3 JPMorgan 17,406.75 53 7.08%
4 HSBC 16,333.52 48 6.64%
5 Goldman Sachs 15,454.74 49 6.29%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 17 Jan 2017
1 Commerzbank Group 114.00 1 66.16%
2 CaixaBank 37.05 1 21.50%
3 UniCredit 10.62 1 6.17%
3 BNP Paribas 10.62 1 6.17%
Subtotal 172.30 3 100.00%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 17 Jan 2017
1 SG Corporate & Investment Banking 770.06 2 16.80%
2 Goldman Sachs 656.16 2 14.32%
3 JPMorgan 527.28 4 11.50%
4 Emirates NBD PJSC 408.38 1 8.91%
5 Deutsche Bank 321.53 3 7.01%