Aussie I-Rate Volumes Expected To Boom After Hike

  • 10 Nov 2003
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Last week's 25 basis point interest rate hike in Australia took derivatives professionals by surprise and will likely lead to a massive jump in volumes in the coming weeks. Gary Vassallo, head of derivatives at Macquarie Bank in Sydney, predicts there will be a 25-30% increase in volumes in the next few weeks. "With the foreshadow of further rate rises, we should get interest for caps and fixings," he said.

Alastair Wait, head of fixed income at Deutsche Bank in Sydney, agreed that there will be a substantial increase in trading and said in addition to swaps there will be strong demand for floating rate structured notes and hybrids. "These are now more attractive products," he added, explaining that investors will plunge into such structures because a rate rise has materialized and more are likely on the way.

"Most people expected [the rate rise] to happen in December rather than November," said Vassallo. The Reserve Bank of Australia bumped up the benchmark rate from 4.75% to 5%. Rates had been stable for 12 months in Australia. The market has already priced in two additional 25 basis point rises for the coming months, according to Wait.

 

  • 10 Nov 2003

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%