Calyon Launches Novel CPPI CLN For Aussie Mart

Calyon recently closed AUD40 million (USD29.4 million) CPPI-linked notes referenced to two credit indices for the Australian market, which the firm believes is a first.

  • 02 Dec 2005
Email a colleague
Request a PDF

Calyon recently closed AUD40 million (USD29.4 million) CPPI-linked notes referenced to two credit indices for the Australian market, which the firm believes is a first. Dubbed Credit SAIL, the notes are referenced to the performance of the Dow Jones CDX and iTraxx Europe and are capital guaranteed through a CPPI strategy. "CDO investors in Australia are looking for diversification," said Pierre Trecourt, executive director and Asia-Pacific head of credit structuring at Calyon in Hong Kong, adding, "Also, CDOs have a limited upside while the potential upside for this product is much higher, given the leverage factor." The six-year notes are leveraged to the indices by over five times.

The reference indices are rolled-over every six month, which Trecourt said is a plus. "Investors will benefit from using on-the-run tranches which will reduce the possibility of default as downgraded names will be removed," he explained. For capital protection, 100% of the initial proceeds are invested into AAA-rated collateral and then returns from the collateral are swapped against positive returns from the index strategy, said Trecourt. Positive returns are paid out semi-annually via coupons as well as from capital appreciation. The deal is being distributed onshore through ANZ.

  • 02 Dec 2005

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 283,306.27 1094 8.16%
2 JPMorgan 271,811.81 1187 7.83%
3 Bank of America Merrill Lynch 254,169.74 856 7.32%
4 Barclays 212,825.73 790 6.13%
5 Goldman Sachs 189,318.47 616 5.45%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 BNP Paribas 37,223.03 158 6.64%
2 JPMorgan 34,910.99 67 6.23%
3 SG Corporate & Investment Banking 30,353.68 113 5.41%
4 UniCredit 29,801.83 136 5.31%
5 Credit Agricole CIB 27,998.53 136 4.99%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 11,324.10 47 8.92%
2 Goldman Sachs 10,371.50 49 8.17%
3 Citi 9,134.57 51 7.19%
4 UBS 6,517.25 25 5.13%
5 Morgan Stanley 6,459.47 42 5.09%