Market Makers Scramble To Cover Short Euro/Dollar Positions

  • 05 Feb 2001
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Market makers were buying euro calls/dollar puts last week in an attempt to cover two euro/dollar options positions that traded last month, estimated at USD2-4 billion (notional). Deutsche Bank and Bank of America reportedly bought the options, and some traders said these positions were on behalf of customers. Traders at Deutsche Bank and BofA declined comment.

The euro calls/dollar puts mature today and are struck at USD0.9485. As a result of the surge in demand, implied volatility for options maturing today jumped to 21.5% last Wednesday. In comparison, one-week implied vol was 13.3%/13.5%. The contracts were out-of-the-money, so market makers were hedging using options.

RBS Financial Markets was also seen buying euro calls/dollar puts struck at USD0.925 expiring last Thursday. Traders speculated that this was to hedge short option positions originating from the Deutsche Bank or Bank of America trade. Traders at RBS declined comment.

  • 05 Feb 2001

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 357,043.08 1340 9.06%
2 JPMorgan 319,078.96 1445 8.09%
3 Bank of America Merrill Lynch 316,666.04 1099 8.03%
4 Goldman Sachs 236,643.87 789 6.00%
5 Barclays 230,494.28 891 5.85%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 34,591.50 163 6.58%
2 Deutsche Bank 34,293.84 117 6.53%
3 Bank of America Merrill Lynch 31,293.04 95 5.96%
4 BNP Paribas 27,578.61 168 5.25%
5 SG Corporate & Investment Banking 23,982.83 136 4.56%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 19,745.92 80 8.86%
2 Morgan Stanley 16,323.54 83 7.32%
3 Citi 15,946.50 94 7.15%
4 UBS 15,487.17 60 6.95%
5 Goldman Sachs 14,053.61 76 6.30%