Japanese Investors Shift Back To Local Deals

Japanese clients are starting to shift back to domestic synthetic CDO deals because of concerns over ratings downgrades in global portfolios.

  • 25 Aug 2006
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Japanese clients are starting to shift back to domestic synthetic CDO deals because of concerns over ratings downgrades in global portfolios. "Japanese investors are starting to worry about the stability of global credits," said Yusuke Seki, senior v.p. in structured finance at Moody's Investors Service in Tokyo, noting downgrades have been filtering into the market. "Some investment banks in Tokyo are struggling to sell global synthetic CDOs," he added.

CDOs comprised of overseas names have been popular over the last few years and make up the majority of the market due to more attractive yields but that yield boost has been shrinking this year. As a result, domestic investors have been more willing to look at locally-generated deals referenced to more familiar names. "Year on year we've seen a good increase in interest," Seki continued.

Domestic CDOs are primarily static single-tranche deals rated AA to AAA, though callability is starting to emerge (DW, 8/21).

  • 25 Aug 2006

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 66,398.25 210 8.43%
2 JPMorgan 62,989.04 222 8.00%
3 Barclays 53,876.84 175 6.84%
4 Bank of America Merrill Lynch 44,675.83 159 5.67%
5 Deutsche Bank 42,359.23 156 5.38%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Bank of America Merrill Lynch 6,160.68 5 15.50%
2 Deutsche Bank 3,400.72 4 8.55%
3 Commerzbank Group 2,532.05 5 6.37%
4 Citi 2,513.95 6 6.32%
5 BNP Paribas 1,742.18 7 4.38%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 UBS 998.25 3 12.68%
2 Citi 693.55 2 8.81%
3 Morgan Stanley 606.80 4 7.71%
4 Bank of America Merrill Lynch 509.34 3 6.47%
5 Jefferies LLC 409.89 4 5.21%