EuroWeek View: Relationships trump ratings in IG loans — now it’s official

When German utility RWE launched a refinancing deal last week with a margin not linked to a ratings grid, it set another benchmark for what borrowers can do when they choose to test the structures of their deals. But ratings have never had that much value in the investment grade loan market, where deals are driven by relationships. RWE will not be the last to break the ratings link.

  • 02 Nov 2010

Margins on investment grade loans to top corporates have crept ever tighter throughout 2010. With the end of the year approaching and underlent banks desperate for business, margins have fallen below banks’ own cost of funding.

That the loans product is a loss leader for many universal banks ...

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GlobalCapital European securitization league table

Rank Lead Manager/Arranger Total Volume $m No. of Deals Share % by Volume
1 BNP Paribas 15,256 32 17.31
2 Bank of America Merrill Lynch (BAML) 9,637 29 10.93
3 Citi 8,264 22 9.37
4 Lloyds Bank 7,329 24 8.31
5 JP Morgan 6,580 10 7.46

Bookrunners of Global Structured Finance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 129,591.43 378 11.13%
2 Bank of America Merrill Lynch 103,866.05 303 8.92%
3 JPMorgan 102,412.09 297 8.79%
4 Wells Fargo Securities 92,651.83 270 7.96%
5 Credit Suisse 76,251.01 205 6.55%