Total Return Swap Variations Gain Favor With Institutions

Institutional fund managers are increasingly looking to innovative total return swaps to manage risk on a short term basis.

  • 07 Jan 2005
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Institutional fund managers are increasingly looking to innovative total return swaps to manage risk on a short term basis. And, underscoring the interest, the International Swaps and Derivatives Association is preparing documentation for total return swaps between equity and debt because these types of trades are becoming more common.

Serkan Bektas, director in institutional sales at Barclays Capital in London, says pension funds are using the swaps as a mechanism of exiting risk temporarily. The most common trades are based on swaps between a bond index and an equity index, but officials said pension funds will look to enter a swap in which they pay the performance of a portfolio they think will under perform in the short term, such as property and in return receive the a floating interest rate or exposure to another asset class. These bespoke trades are less liquid than traditional total return swaps, said Bektas, but they are increasingly popular.

  • 07 Jan 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
  • 25 Jul 2017
1 HSBC 27,039.93 106 7.36%
2 Deutsche Bank 25,125.19 81 6.84%
3 Bank of America Merrill Lynch 23,128.33 61 6.29%
4 BNP Paribas 19,315.94 110 5.26%
5 Credit Agricole CIB 18,706.93 106 5.09%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 25 Jul 2017
1 JPMorgan 13,488.13 59 8.47%
2 Citi 11,496.21 73 7.22%
3 UBS 11,302.86 45 7.09%
4 Morgan Stanley 10,864.95 59 6.82%
5 Goldman Sachs 10,434.21 54 6.55%