SunAmerica Looks To GNMA Shift

SunAmerica Asset Management will buy an unspecified amount of Ginnie Maes if the yield on the 10-year Treasury rises to 3.9%.

  • 19 Mar 2004
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Michael Cheah
SunAmerica Asset Management will buy an unspecified amount of Ginnie Maes if the yield on the 10-year Treasury rises to 3.9%. Michael Cheah, portfolio manager of $1.5 billion in Jersey City, N.J., says he will be a big buyer of 5% and 5 1/2% Ginnies when prices on Treasuries scale back from their recent highs, which were reached in the wake of the Madrid terrorist bombings and a disappointing U.S. jobs report. The agency debt provides a healthy risk-reward balance at a time when refinancing activity is picking up and prepayment uncertainty is increasing, Cheah explains. The yield on the 10-year was 3.76% on March 15.

Cheah thinks there is a good chance yields will rise for two reasons: One, there could be selling for profit taking and two, foreign central banks could sell for currency stabilization. The fund manager says he will be a big buyer of GNMAs and Treasuries under these conditions. "I like to buy when others are selling," he explains. Cheah thinks the GNMA 5% are fairly valued at 101.16, 5 1/2% at 102.28 and 4 1/2% at 98.10.

The fund's current allocation is 80% in GNMAs, 10% in Treasuries and 10% in cash. Of the GNMA portion, 60% is in 5% coupons, 30% are 5 1/2% notes, and 10% are of the 4 1/2% variety. He declined to quantify how much he might buy if Treasuries back up. The duration of his portfolio is 4.5 years, neutral that of the benchmark. The fund's benchmark is a composite of the Merrill Lynch Mortgage Index and the Lehman Brothers Treasury Index.

  • 19 Mar 2004

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%

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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%