Slumping Vol Hits Korea Structured Note Mart

  • 28 Mar 2006
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Declining equity volatility in recent weeks has taken the sails out of the structured note market in Korea as pricing has become less attractive. "Single-stock vol has declined sharply," said an official at ABN AMRO. For example, realized volatility on Shinhan Financial Group has fallen from around 40% last year to 25%. It has become difficult to price equity-linked notes--a massive local business in the last few years--at attractive levels. "The margin for a deal we were holding and preparing to issue was wiped out within three days," said a senior equity derivatives marketer at a bulge bracket house.

Specialists attributed falling vol to many participants' belief the market has peaked after last year's strong run and will likely remain range-bound. The KOSPI index is down over 3% for this year after a 50% rise in 2005. Equity officials lamented this year will be challenging for equity derivative structurers at international houses, not only because of falling volatility, but also from the increased presence of alternative products such as traditional mutual fund houses offering foreign exposure.

  • 28 Mar 2006

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 20,521.83 80 6.93%
2 Barclays 20,382.90 37 6.89%
3 JPMorgan 18,760.94 72 6.34%
4 Goldman Sachs 17,444.96 41 5.89%
5 BNP Paribas 16,525.22 36 5.58%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 48,528.41 214 6.32%
2 Deutsche Bank 44,075.51 161 5.74%
3 BNP Paribas 41,452.79 240 5.40%
4 JPMorgan 37,278.65 134 4.85%
5 SG Corporate & Investment Banking 36,258.27 187 4.72%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Goldman Sachs 1,607.28 5 24.01%
2 Credit Suisse 1,301.65 4 19.45%
3 UBS 970.80 3 14.50%
4 BNP Paribas 522.35 4 7.80%
5 SG Corporate & Investment Banking 444.17 3 6.64%