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
  • Today
1 Citi 358,291.38 1348 9.06%
2 JPMorgan 320,704.66 1461 8.11%
3 Bank of America Merrill Lynch 318,128.31 1104 8.04%
4 Goldman Sachs 236,643.87 789 5.98%
5 Barclays 231,197.41 895 5.84%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 35,007.57 165 6.53%
2 Deutsche Bank 34,880.53 120 6.51%
3 Bank of America Merrill Lynch 31,805.65 97 5.93%
4 BNP Paribas 27,920.60 169 5.21%
5 SG Corporate & Investment Banking 24,398.89 138 4.55%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 19,745.92 80 8.85%
2 Morgan Stanley 16,334.63 83 7.32%
3 Citi 15,972.34 95 7.16%
4 UBS 15,487.17 60 6.94%
5 Goldman Sachs 14,053.61 76 6.30%