Portfolio Managers Sit On Their Hands To Avoid Insider Trading Label

Portfolio managers at commercial banks are holding back from entering legitimate trades because of concerns that market participants might think they are allowing information to flow through the Chinese wall.

  • 04 Apr 2004
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Portfolio managers at commercial banks are holding back from entering legitimate trades because of concerns that market participants might think they are allowing information to flow through the Chinese wall. David Bushnell, senior risk officer at Citigroup, noted that in spite of procedures ensuring portfolio managers do not have access to private information, trading is impeded in many cases because of sensitivity over the issue. David Hinman, executive v.p. at PIMCO, said it believed banks were trading on supposedly confidential information in 2002 and is not convinced this has stopped.

Another challenge facing portfolio managers is how to hedge less liquid exposures and develop hedges that are effective under the new accounting rules. Bushnell said Citigroup has traditionally mitigated credit exposure by selling loans or entering credit derivatives on individual names or portfolios, but is looking at other strategies because recent acquisitions mean its USD500 million portfolio has more middle market exposure, a sector which is not liquid in the single-name credit-default swap market. Accounting changes have also meant it is looking at different hedging strategies, noted Bushnell.

  • 04 Apr 2004

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 358,996.09 1352 9.05%
2 JPMorgan 321,264.04 1464 8.10%
3 Bank of America Merrill Lynch 318,428.16 1105 8.03%
4 Goldman Sachs 237,263.73 791 5.98%
5 Barclays 231,619.97 897 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%