Spreads Widen As Volkswagen Bond Deal Prices

  • 19 May 2003
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Credit-default swaps spreads on Volkswagen widened about 10 basis points ahead of the company's EUR4.5 billion (USD5.1 billion) bond offering, with trading remaining volatile as the company increased the size of the deal before pricing. Traders said swaps were trading at about 53 basis points two weeks ago and as the deal was announced began to inch out. On Monday, spreads widened to 75 basis points from the low 60s, traders said. "Before the deal priced [on Tuesday], the spreads bounced around, especially when the size of the deal changed," noted one trader. The initial size of the offering was EUR3 billion and at one time during the pricing it looked like it was going to be increased to as much as EUR5 billion, traders said.

Traders said volumes were up dramatically against the backdrop of a relatively slow beginning of the week. On Wednesday and Thursday, however, trading picked up across the board as names blew out in general, particularly in the auto and telecom sectors.

Michie Yana, senior credit analyst at Commerzbank Securities in London, said Volkswagen faces a challenging year. "There are three potential soft spots," she said, explaining that the first is the company's foreign currency exposure, which is what resulted in its first quarter revenue and profit weakness. Additionally, if the SARS crisis lasts longer than anticipated it will be detrimental to one of Volkswagen's bright spots, its joint ventures in China. Lastly, there is uncertainty over how the company's remodeled Golf will be received.

  • 19 May 2003

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 24 Oct 2016
1 JPMorgan 317,793.98 1355 8.72%
2 Citi 301,114.13 1092 8.26%
3 Barclays 259,580.63 846 7.12%
4 Bank of America Merrill Lynch 258,842.43 934 7.10%
5 HSBC 224,273.23 905 6.15%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 25 Oct 2016
1 JPMorgan 32,854.00 58 6.73%
2 BNP Paribas 31,678.29 142 6.49%
3 UniCredit 31,604.22 138 6.47%
4 HSBC 25,798.87 114 5.29%
5 ING 21,769.65 121 4.46%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 25 Oct 2016
1 JPMorgan 14,633.71 80 10.23%
2 Goldman Sachs 11,731.14 63 8.20%
3 Morgan Stanley 9,435.23 48 6.60%
4 Bank of America Merrill Lynch 9,229.95 42 6.45%
5 UBS 8,781.68 42 6.14%