€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 $bn No of issues Share %
  • Last updated
  • Today
1 JPMorgan 97.56 359 9.29%
2 Citi 80.91 307 7.70%
3 BofA Securities 69.71 280 6.64%
4 Barclays 61.34 245 5.84%
5 Goldman Sachs 50.83 184 4.84%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 Deutsche Bank 5.67 19 10.42%
2 JPMorgan 4.56 15 8.38%
3 BofA Securities 4.32 16 7.93%
4 Citi 3.70 15 6.80%
5 Commerzbank Group 2.65 10 4.87%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $bn No of issues Share %
  • Last updated
  • Today
1 Credit Suisse 2.84 5 11.79%
2 JPMorgan 2.15 15 8.91%
3 Morgan Stanley 1.94 12 8.03%
4 Barclays 1.75 12 7.24%
5 Citi 1.63 13 6.79%