Single-Name Options Mart Vanishes In Europe

The two-way market for single-name credit options has dried up in Europe because players have shied away from carrying the short side.

  • 06 Jan 2006
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The two-way market for single-name credit options has dried up in Europe because players have shied away from carrying the short side. Traders said liquidity disappeared when the downgrades of General Motors Corp. and Ford Motor Co. sent volatility soaring to around 70%, from around 20% the previous month. Dealers have been reluctant to sell options on such volatile names. "As volatility rose, appetite for that type of risk vanished," said a credit options trader in London.

In contrast, liquidity of options on the credit indices has soared, comprising almost all the USD2 billion in average notional traded every month last year. In May alone, volumes hit an estimated USD2.75billion. Options traders say they are comfortable trading either side of the index volatility game, but only one side of the single name market. "This will hopefully change," said one trading official.

  • 06 Jan 2006

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 281,642.23 1086 8.16%
2 JPMorgan 270,584.56 1179 7.84%
3 Bank of America Merrill Lynch 253,429.76 853 7.34%
4 Barclays 210,456.38 780 6.09%
5 Goldman Sachs 188,752.91 614 5.47%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 BNP Paribas 37,171.06 156 6.65%
2 JPMorgan 34,910.99 67 6.25%
3 SG Corporate & Investment Banking 30,338.70 112 5.43%
4 UniCredit 29,482.91 134 5.28%
5 Credit Agricole CIB 27,998.53 136 5.01%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 11,322.29 47 9.04%
2 Goldman Sachs 10,369.68 49 8.28%
3 Citi 9,134.57 51 7.29%
4 UBS 6,515.43 25 5.20%
5 Morgan Stanley 6,459.47 42 5.16%