DWS Ponders AOL

  • 26 May 2002
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DWS Investments is seeking to increase its exposure to corporate bonds. In particular, the media sector appears very cheap says Xueming Song, Frankfurt-based portfolio manager of the firm's $420 million dollar portfolio, who is looking to add AOLTimeWarner's 10-year benchmark bond. The 6 7/8% of '12 global bond has widened roughly 100 basis points to 260 over Treasuries in the past month. Song says he will buy AOL once it widens to 280-290 over. "If you drop AOL out of AOLTimeWarner, there are still good medium- to long-term fundamentals," he says.

Song has also added France Telecom's 3 1/4% of '11 at 330 over Treasuries. He believes FT's problems are priced in already and the bonds should tighten by 50 basis points. "The market is uncertain about telecoms at the moment, but France Telecom is still more or less a monopoly in France," he says. He is more cautious about other telecoms, because there has been a lot of volatility as many funds have been forced sellers of WorldCom. Song thinks Verizon and SBC could also be affected by negative market sentiment.

Elsewhere in the portfolio, Song has added stable cyclical names, such as Weyerhauser's 63/4% of '12 in the paper and pulp sector, which trades at 150 over Treasuries. He also holds Duke Energy's floaters of '05. "The (U.S) economy will recover, slowly, but it will recover, which should benefit stable cyclical names," he says.

  • 26 May 2002

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 34,411.72 162 6.58%
2 Deutsche Bank 34,293.84 117 6.56%
3 Bank of America Merrill Lynch 31,113.25 94 5.95%
4 BNP Paribas 27,578.61 168 5.27%
5 SG Corporate & Investment Banking 23,982.83 136 4.59%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 19,536.02 78 8.84%
2 Morgan Stanley 16,323.54 83 7.38%
3 Citi 15,946.50 94 7.21%
4 UBS 15,404.75 59 6.97%
5 Goldman Sachs 13,695.77 74 6.19%