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
  • 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
  • 16 May 2017
1 Deutsche Bank 19,381.65 47 8.82%
2 Bank of America Merrill Lynch 18,968.25 36 8.63%
3 HSBC 18,103.95 50 8.24%
4 BNP Paribas 8,911.57 55 4.05%
5 SG Corporate & Investment Banking 8,885.00 54 4.04%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 23 May 2017
1 JPMorgan 8,714.26 35 8.36%
2 UBS 8,283.47 33 7.95%
3 Goldman Sachs 7,736.57 37 7.42%
4 Citi 6,897.11 46 6.62%
5 Bank of America Merrill Lynch 6,215.31 24 5.96%