VW’s 35bp marks new low for loan market despite raging crisis

A margin of just 35bp on a €5bn five year revolving credit for German auto firm Volkswagen this week could well mark the pricing bottom of the investment grade loan market, as the continuing debt crises in the US and across the eurozone take their toll on the sector.

  • 28 Jul 2011

The deal for A3/A- rated Volkswagen, led by Citi and Commerzbank, was almost twice oversubscribed by lenders desperate for a slice of the borrower’s much-prized ancillary business — despite what one banker called "unbelievable" pricing.

But bankers fear that lenders could start to decline some of the most ...

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GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 Bank of America Merrill Lynch (BAML) 7,026 25 11.95
2 Citi 6,449 21 10.96
3 BNP Paribas 5,093 18 8.66
4 Barclays 4,040 11 6.87
5 Lloyds Bank 3,615 14 6.15

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1 Citi 1,505.59 4 23.31%
2 SG Corporate & Investment Banking 1,292.64 1 20.01%
2 Rabobank 1,292.64 1 20.01%
4 BNP Paribas 598.25 2 9.26%
5 TD Securities Inc 241.54 1 3.74%