Deutsche Bank Forecasts Profit In Dollar Calls

  • 22 Oct 2001
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Deutsche Bank is recommending clients purchase one-year at-the-money U.S. dollar calls/yen puts to take advantage of low volatilities caused by the Bank of Japan's intervention to create a dollar floor around JPY119 and the belief in a U.S. recovery next year, said Ken Landon, senior currency strategist at Deutsche Bank in Tokyo. "It's a pretty straightforward strategy-a lot of people like that," he added, "anyone who wants to take a directional view would be interested."

Now is a good time to enter the trade, Landon noted, adding "I don't see vols going any lower." At these levels there is good value for a one-year time frame where an investor can take profits at any time during the year by unwinding the position. One-year implied vol was around 10.4% Thursday.

Landon continued that Deutsche Bank's one-year forecast for the currency pairing is that it would head to JPY140. "We're one of the most bullish houses on the street [for dollar strengthening over yen]," Landon added. The factors he attributes to the yen appreciating are a V-shaped recovery in the U.S. next year, assisted by Federal Reserve interest-rate cuts, while Japan's economy will remain weak. "I don't see anything benefiting [Japan's] economy," he continued. Last Thursday spot was at JPY120.85. He declined to comment on the premium for the trade.

  • 22 Oct 2001

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
  • 14 Mar 2017
1 Bank of America Merrill Lynch 10,650.87 23 11.13%
2 Deutsche Bank 8,169.49 17 8.53%
3 HSBC 6,243.46 23 6.52%
4 Citi 4,355.35 13 4.55%
5 SG Corporate & Investment Banking 4,273.37 17 4.46%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 21 Mar 2017
1 JPMorgan 5,440.56 17 10.74%
2 Deutsche Bank 4,468.97 23 8.82%
3 UBS 3,742.72 17 7.39%
4 Citi 3,393.89 23 6.70%
5 Goldman Sachs 3,360.93 18 6.63%