Core covered bonds show value despite tapering expectations

Investors believe core covered bond spreads have the scope to tighten. but the underlying mood is still fragile, investors lack confidence and are fearful that volatility will return, especially in the peripheral markets. There is also a risk that the European Central Bank proves to be more hawkish than expected at this Thursday’s policy meeting.

  • By Bill Thornhill
  • 13 Jun 2018

It is not improbable that investors and bank traders will be incentivised to take profits, or lighten up on trading inventory, ahead of the third quarter — particularly in Italian covered bonds. 

Even so, in the opinion of some investors, near term spread prospects are constructive. That ...

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Bookrunners of Global Covered Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 UniCredit 11,671.49 81 5.45%
2 HSBC 10,985.14 63 5.13%
3 LBBW 10,428.35 68 4.87%
4 Natixis 10,056.83 54 4.69%
5 Commerzbank Group 9,739.62 61 4.54%

Bookrunners of Global FIG

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 76,286.55 325 6.16%
2 Citi 75,616.17 381 6.11%
3 Bank of America Merrill Lynch 74,287.75 290 6.00%
4 Goldman Sachs 69,250.76 575 5.59%
5 Morgan Stanley 64,136.05 354 5.18%

Bookrunners of Dollar Denominated FIG

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 62,656.60 228 10.68%
2 Bank of America Merrill Lynch 62,176.39 241 10.60%
3 Citi 58,885.51 284 10.04%
4 Goldman Sachs 52,481.43 510 8.95%
5 Morgan Stanley 49,661.01 274 8.47%

Bookrunners of Euro Denominated Covered Bond Above €500m

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Natixis 7,428.28 28 7.28%
2 UniCredit 5,756.33 23 5.64%
3 LBBW 5,736.91 24 5.62%
4 Deutsche Bank 5,667.40 19 5.55%
5 Commerzbank Group 5,647.34 22 5.53%

Global FIG Revenue

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • 02 May 2016
1 Morgan Stanley 365.83 497 7.62%
2 JPMorgan 332.66 618 6.92%
3 Bank of America Merrill Lynch 299.89 590 6.24%
4 Goldman Sachs 276.71 375 5.76%
5 Citi 264.54 592 5.51%

Bookrunners of European Subordinated FIG

Rank Lead Manager Amount €m No of issues Share %
  • Last updated
  • Today
1 HSBC 7,584.11 21 12.84%
2 Barclays 4,776.16 18 8.08%
3 Credit Suisse 4,490.78 15 7.60%
4 BNP Paribas 4,171.68 19 7.06%
5 UBS 3,877.49 18 6.56%