Investors warn against high NIPs punishing long term support

At first look, a high new issue premium makes a corporate bond deal look cheap for investors. However, the negative effect that premium can have on an issuer’s outstanding bonds can prove to outweigh the cheapness of the new deal for an issuer’s long term backers.

  • By Nigel Owen, Victor Jimenez
  • 09 Jan 2019
“In simplistic terms, secondary spreads reflect the credit risk of an issuer and the new issue premium reflects the risk in the market at the time of doing the deal,” said a credit fund manager at a UK asset manager. “But if the new issue premium is seen ...

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All Corporate Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 65,229.50 331 5.48%
2 Citi 62,835.00 322 5.28%
3 Bank of America Merrill Lynch 59,987.27 316 5.04%
4 Barclays 53,371.73 232 4.48%
5 Morgan Stanley 44,457.74 265 3.73%

Bookrunners of Euro Denominated Corporate IG Bonds

Rank Lead Manager Amount $m No of issues Share %
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  • Today
1 Barclays 16,156.11 43 8.13%
2 SG Corporate & Investment Banking 13,141.46 53 6.61%
3 BNP Paribas 12,649.28 73 6.36%
4 Deutsche Bank 11,922.97 60 6.00%
5 Citi 11,677.27 53 5.87%

Bookrunners of European HY Bonds

Rank Lead Manager Amount €m No of issues Share %
  • Last updated
  • Today
1 Deutsche Bank 2,970.40 18 8.37%
2 Citi 2,605.77 18 7.34%
3 BNP Paribas 2,567.12 24 7.23%
4 JPMorgan 2,467.56 18 6.95%
5 Goldman Sachs 1,928.73 16 5.43%

Bookrunners of Dollar Denominated HY Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 14,123.16 113 9.80%
2 Citi 13,032.25 105 9.05%
3 Bank of America Merrill Lynch 10,741.94 90 7.46%
4 Goldman Sachs 10,344.47 77 7.18%
5 Morgan Stanley 8,543.55 64 5.93%

Bookrunners of European Corporate IG Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 SG Corporate & Investment Banking 12,515.88 54 5.47%
2 BNP Paribas 12,267.31 70 5.36%
3 Citi 12,116.90 53 5.29%
4 Bank of America Merrill Lynch 10,703.57 44 4.68%
5 JPMorgan 10,634.11 47 4.65%