€STR body's gotta learn sometime

If the ECB wishes its new risk free rate €STR to take off in the way that its UK and US cousins have, it must learn lessons from those country’s central banks on how to promote it.

  • By Burhan Khadbai, Lewis McLellan
  • 03 Oct 2019
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Sonia-linked borrowing has swiftly become a mainstream product in the bond market, and the US version, Sofr, is not far behind. The success is a result of the efforts of the Bank of England and the US Federal Reserve.

Although the UK loan market is still reluctant to let go of Libor, like a child who won’t let go of a security blanket it’s grown out of, the Bank of England published a report on Monday chastising it and chivvying it towards adopting Sonia.

Its efforts are gradually being rewarded. NatWest issued a loan against the Sonia benchmark in June.

New York Fed president John Williams made a speech two weeks ago scolding market participants for “sticking their metaphorical heads in the sand” and assured them that the demise of Libor is a foregone conclusion.

The European Central Bank faces an uphill struggle with the promotion of €STR, and its actions so far don’t suggest a sense of urgency, given how long it took for €STR to be published in the first place.

While the ECB has taken the bold and laudable step of pegging the old rate Eonia to the new rate €STR, Euribor will still be hanging around, much like legendary football manager Bill Shankly was said to done at Liverpool FC’s training ground long after he retired, being nothing but a huge distraction to progress.

A central bank should be the loudest voice in coaching markets to transition away from Libor. The ECB needs to speak up, or €STR could be ignored.

  • By Burhan Khadbai, Lewis McLellan
  • 03 Oct 2019

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 327,284.47 1491 8.49%
2 Citi 298,988.13 1274 7.76%
3 Bank of America Merrill Lynch 257,275.15 1079 6.67%
4 Barclays 234,156.65 962 6.07%
5 HSBC 189,507.38 1039 4.92%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 BNP Paribas 37,082.71 171 7.26%
2 Credit Agricole CIB 35,705.77 154 6.99%
3 JPMorgan 29,353.75 74 5.75%
4 Bank of America Merrill Lynch 23,923.68 67 4.69%
5 SG Corporate & Investment Banking 23,666.95 111 4.64%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 10,133.31 66 9.96%
2 Morgan Stanley 9,408.95 44 9.25%
3 Goldman Sachs 8,721.03 45 8.57%
4 Citi 6,714.07 51 6.60%
5 UBS 5,276.75 29 5.19%