Warburg Considers Retail Credit Product

  • 19 Nov 2001
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UBS Warburg is looking at structuring a capital guaranteed product comprising of credit derivatives to sell to retail investors in the U.K. Although the plan is in its infancy and details are scarce, officials at the firm said it hopes to use single-name default swaps to leverage a fixed-income portfolio and generate higher returns than are currently possible in the equity or bond markets. Warburg officials said such a product has not been sold before to U.K. retail investors, who are historically more conservative then their counterparts on the continent. Pros at rival firms were not aware of any similar products.

The product is likely to be based on a static basket of around 20 investment-grade default swaps on names that retail investors are familiar with, such as retailers Gap and Toys "R" Us, according to an official.

"We're trying to see if an equity-type product can be structured with credit," said one credit professional. The firm aims to produce returns of around 7-10% per year, for roughly five years. He continued that investing in a basket of investment-grade credit default swaps would be more stable than equities. "People are taking equity risk, which is the biggest an investor can take and we think we should be having a look at debt because there is potentially as much upside in leveraged credit," he said. Specifically, he referred to Marconi, which continues to pay bondholders despite its shares having plummeted.

  • 19 Nov 2001

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 16 Jan 2017
1 Citi 22,118.13 61 9.00%
2 Barclays 20,987.41 55 8.54%
3 JPMorgan 17,406.75 53 7.08%
4 HSBC 16,333.52 48 6.64%
5 Goldman Sachs 15,454.74 49 6.29%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 17 Jan 2017
1 Commerzbank Group 114.00 1 66.16%
2 CaixaBank 37.05 1 21.50%
3 UniCredit 10.62 1 6.17%
3 BNP Paribas 10.62 1 6.17%
Subtotal 172.30 3 100.00%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 17 Jan 2017
1 SG Corporate & Investment Banking 770.06 2 16.80%
2 Goldman Sachs 656.16 2 14.32%
3 JPMorgan 527.28 4 11.50%
4 Emirates NBD PJSC 408.38 1 8.91%
5 Deutsche Bank 321.53 3 7.01%