Restructuring Credit Events Surge

The proportion of credit events triggered by the restructuring clause in credit-default swaps almost doubled last year.

  • 29 Feb 2004
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The proportion of credit events triggered by the restructuring clause in credit-default swaps almost doubled last year. During 2003 and the first two weeks of this year the restructuring clause in credit derivatives was responsible for 24% of all credit events but accounted for only 12.8% of credit events since records began, according to Fitch data. Shin Yukawa, an associate director at the rating agency, attributed the increase to the restructuring of British Energy, which was one of the largest defaults in the European market last year.

After the adoption of the International Swaps and Derivatives Association 2003 credit derivatives definitions the restructuring clause was largely dropped in the U.S. and a modified version--known as modified modified restructuring--became the norm in the European market. The change was largely due to sellers of protection arguing that the restructuring clause was a 'soft' credit event and only objective events, such as failure to pay, should be included.

The bankruptcy clause was responsible for 71.8% of credit events during last year and early this year, compared to 79.7% before and the failure to pay trigger fell to 4.2% from 6.6%.

  • 29 Feb 2004

All International Bonds

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%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 16 May 2017
1 Deutsche Bank 19,381.65 47 8.82%
2 Bank of America Merrill Lynch 18,968.25 36 8.63%
3 HSBC 18,103.95 50 8.24%
4 BNP Paribas 8,911.57 55 4.05%
5 SG Corporate & Investment Banking 8,885.00 54 4.04%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 23 May 2017
1 JPMorgan 8,714.26 35 8.36%
2 UBS 8,283.47 33 7.95%
3 Goldman Sachs 7,736.57 37 7.42%
4 Citi 6,897.11 46 6.62%
5 Bank of America Merrill Lynch 6,215.31 24 5.96%