FX Players See New Demand From Bond Funds

Traditional bond managers and pension funds are increasing their activity in the foreign exchange markets to beef up returns amid tight spreads.

  • 25 Feb 2005
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Traditional bond managers and pension funds are increasing their activity in the foreign exchange markets to beef up returns amid tight spreads.

Currency players say funds are giving them more latitude in their investing styles as the ubiquitous search for yield is driving new demand for fx-focused investments. This is largely because investor mentality has changed from viewing currency plays as a hedge to now as a return generator, Dan Szor, managing director at FX Concepts, which manages fixed income mandates for institutional investors. He said on average over the last five years, three of the top 10 global fixed-income managers actively managing against the Lehman Brothers Global Aggregate Bond Index have outperformed the index by 50-150 basis points, while a currency portfolio with a similar risk profile would have beaten the index by 300bps.

Andrew Dales, director of currency research and strategy at Barclays Global Investors, agreed there has been a shift in how investors use fx exposure and said he is placing more long and short positions than in the past and is investing in a wider range of currencies. The increased flexibility is reducing the role of the dollar and Treasuries in FX portfolios, said investors.

  • 25 Feb 2005

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%