Iowa Firm Adds MBS, Energy

  • 05 Aug 2001
Email a colleague
Request a PDF

Investors Management Group, a Des Moines, Iowa manager with $2 billion in taxable fixed-income under management, is preparing to add some 5-7% to its mortgage-backed allocation, taking it from 33% of the portfolio, to nearly 40%. Kathy Beyer, portfolio manager, says the firm recently purchased Ginnie Mae 8% bonds to take its combined MBS and asset-backed allocation to a slight overweight. Beyer says the firm will continue to add 30-year Ginnie 8s if mortgage rates (the Freddie Mac survey of 30-year rates was 7.03% at the time of the interview) climb to the 7.25% range and the economy picks up, diminishing refinancing concerns.

The firm is also seeking to swap out of its Omnicare 5% of '07 (Ba3/BB+) as the price of the pharmaceutical company's busted convertibles has climbed from $64.5 in September of 1999, when Beyer made the purchase, to $915Ž8 on July 27. It is looking to add Nabors Industries zeros of '21, also a busted convertible. (The bond is not rated, but Nabors' senior debt is rated A3/A-). Beyer says the oil and gas driller's bonds, issued at $60.84 on Feb. 5 of this year, have fallen to a price of $52 as of July 27, due to a decline in natural gas prices. Beyer thinks Nabors' earnings will hold up well, and she likes to pick up convertibles when they trade at the bond value--the value of the bond once its convertible feature is stripped out--if she believes the stock will turn around. Nabors' stock, which was in the low $60s in late April, had fallen to $31.10 on July 27.

Investors Management Group allocates 35% to corporates, 33% to MBS, 15% to U.S. Treasuries, 12% to ABS and 5% to U.S. Agencies. At a duration of 4.0-years, the manager is short the 4.70-year Lehman Brothers Aggregate Index.

  • 05 Aug 2001

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 315,565.94 1183 8.89%
2 JPMorgan 288,650.70 1316 8.13%
3 Bank of America Merrill Lynch 284,218.69 988 8.01%
4 Goldman Sachs 215,758.12 710 6.08%
5 Barclays 207,555.74 805 5.85%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 32,400.29 147 6.76%
2 Deutsche Bank 32,042.83 103 6.69%
3 Bank of America Merrill Lynch 28,820.43 84 6.02%
4 BNP Paribas 25,608.74 143 5.35%
5 Credit Agricole CIB 22,617.86 130 4.72%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 18,067.92 70 9.12%
2 Morgan Stanley 15,215.44 76 7.68%
3 UBS 14,195.29 55 7.17%
4 Citi 14,014.57 86 7.07%
5 Goldman Sachs 12,113.98 67 6.11%