Japanese Insurance Giant Preps CDO Debut

  • 29 Oct 2001
Email a colleague
Request a PDF

Mitsui Sumitomo Insurance, a Tokyo-based insurer with JPY7.57 trillion (USD61 billion) in assets, is considering purchasing its first synthetic collateralized debt obligation in the coming months, likely referenced to Japanese credits. The firm is the result of a merger this month between Sumitomo Marine & Fire Insurance and Mitsui Marine & Fire Insurance. Both have previously invested in the synthetic CDO market, but the combined entity will be more active than the sum of its parts, said Akihiro Yoshikawa, deputy manager of the financial solutions department in Tokyo. The two insurers had a combined synthetic CDO portfolio of around USD3 billion prior to the merger.

The insurer will look to enter the synthetic CDO market once the dust settles, likely within three months, according to an official. It will look to buy a synthetic CDO based on Japanese credits because it is familiar with the reference credits. It is also keen to avoid U.S. names because of deteriorating credit quality in corporate America.

"We'll look to become an active player," Yoshikawa said. The insurer will invest in the AAA rated tranches, putting USD50-60 million in each investment. The insurer is in discussion with J.P. Morgan and Deutsche Securities about entering a deal. He declined further comment.

Seiko Adachi, spokeswoman at Deutsche Securities in Tokyo, declined comment and Atsuko Yoshitsugu, spokeswoman at J.P. Morgan, did not return calls.

  • 29 Oct 2001

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 315,565.94 1183 8.89%
2 JPMorgan 288,650.70 1316 8.13%
3 Bank of America Merrill Lynch 284,218.69 988 8.01%
4 Goldman Sachs 215,758.12 710 6.08%
5 Barclays 207,555.74 805 5.85%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Deutsche Bank 31,971.88 102 6.82%
2 HSBC 31,420.91 141 6.70%
3 Bank of America Merrill Lynch 28,468.55 82 6.07%
4 BNP Paribas 24,740.49 136 5.28%
5 SG Corporate & Investment Banking 22,195.55 122 4.73%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 16,040.76 69 8.23%
2 Morgan Stanley 15,028.69 75 7.71%
3 UBS 14,195.29 55 7.28%
4 Citi 13,827.82 85 7.09%
5 Goldman Sachs 12,113.98 67 6.21%