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
  • 16 Jan 2017
1 Citi 22,118.13 61 9.00%
2 Barclays 20,987.41 55 8.54%
3 JPMorgan 17,406.75 53 7.08%
4 HSBC 16,333.52 48 6.64%
5 Goldman Sachs 15,454.74 49 6.29%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 17 Jan 2017
1 Commerzbank Group 114.00 1 66.16%
2 CaixaBank 37.05 1 21.50%
3 UniCredit 10.62 1 6.17%
3 BNP Paribas 10.62 1 6.17%
Subtotal 172.30 3 100.00%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 17 Jan 2017
1 SG Corporate & Investment Banking 770.06 2 16.80%
2 Goldman Sachs 656.16 2 14.32%
3 JPMorgan 527.28 4 11.50%
4 Emirates NBD PJSC 408.38 1 8.91%
5 Deutsche Bank 321.53 3 7.01%