BNP Markets Novel Snowball Variation

BNP Paribas in London is marketing an innovative interest rate-linked investment product for clients who believe rates will rise.

  • 22 Oct 2004
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BNP Paribas in London is marketing an innovative interest rate-linked investment product for clients who believe rates will rise. The structure is similar to a snowball note because each coupon is linked to the value of previous coupons. A typical snowball product, however, pays out as rates fall, whereas the BNP Coral note will pay out if rates rise. The note also has a callable feature, which enables BNP to offer a high initial fixed coupon to the investor.

In an example of the structure, linked to three-month Euribor, the investor will receive a coupon for each fix the index is at or above the margins, after receiving a guaranteed 7.5% for the first two periods. Kara Lemont, a marketer at BNP in London, said, "The curve is steep for a reason, there are some people out there who think that rates will go up." This product offers these investors the chance to express that view, added Lemont.

  • 22 Oct 2004

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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%

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Rank Lead Manager Amount $m No of issues Share %
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  • 14 Mar 2017
1 Bank of America Merrill Lynch 10,650.87 23 11.13%
2 Deutsche Bank 8,169.49 17 8.53%
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4 Citi 4,355.35 13 4.55%
5 SG Corporate & Investment Banking 4,273.37 17 4.46%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 21 Mar 2017
1 JPMorgan 5,440.56 17 10.74%
2 Deutsche Bank 4,468.97 23 8.82%
3 UBS 3,742.72 17 7.39%
4 Citi 3,393.89 23 6.70%
5 Goldman Sachs 3,360.93 18 6.63%