Lombard Odier Scaling Back Telecoms, Adding Financials

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  • 05 May 2003
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Lombard Odier Darier Hentsch (LODH), an international asset management firm based in Geneva, which manages E2 billion in European corporate credit, will sell its positions in lower-rated telecoms and buy bank debt in lower-rated financials in the coming weeks.

Rodrigo Araya, v.p. and credit market analyst/portfolio manager based in Amsterdam, say spreads have tightened in lower-rated telecoms such as France Telecom, Deutsche Telekom and Telecom Italia/Olivetti, while he still sees value in lower-rated financials. Telecom spreads are at roughly 125 basis points over EURIBOR and Araya says he won't be waiting much longer to sell.

LODH has been overweight telecoms since January. The issues have been steadily tightening in response to the companies becoming increasingly de-leveraged. Araya says he will be selling his 10-year positions, which have become the most expensive to hold as the spread difference between lower- and higher-rated telecoms has decreased.

"Financials will be the name of the game after the telco play," says Araya. He is looking at buying tier-one paper in financial names that "have a bit of story, where credit spreads could tighten a little more." He named Abbey National, IntesaBCI, Monte Paschi Dei Siena as a few of the names he is considering. He is also eyeing some of the downtrodden German banks. Araya notes that Italian banks widen when there is a scare in the market and says Intesa is an improving name.

LODH's primary corporate credit benchmark is the Salomon Smith Barney Non-EGBI Euro Big. It also uses the Merrill Lynch non-sovereign index.


  • 05 May 2003

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 24 Jul 2017
1 Citi 253,106.92 930 8.89%
2 JPMorgan 230,914.50 1036 8.11%
3 Bank of America Merrill Lynch 221,389.46 762 7.78%
4 Goldman Sachs 171,499.26 554 6.03%
5 Barclays 169,046.60 646 5.94%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 25 Jul 2017
1 HSBC 27,039.93 106 7.36%
2 Deutsche Bank 25,125.19 81 6.84%
3 Bank of America Merrill Lynch 23,128.33 61 6.29%
4 BNP Paribas 19,315.94 110 5.26%
5 Credit Agricole CIB 18,706.93 106 5.09%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 25 Jul 2017
1 JPMorgan 13,488.13 59 8.47%
2 Citi 11,496.21 73 7.22%
3 UBS 11,302.86 45 7.09%
4 Morgan Stanley 10,864.95 59 6.82%
5 Goldman Sachs 10,434.21 54 6.55%