Credit Options Multiply Ten-Fold

The credit options market in Europe has grown 10-fold through the end of the third quarter, driven by growing investor preference to take short-term views on underlyings rather than buying a bond or selling credit protection.

  • 07 Oct 2005
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The credit options market in Europe has grown 10-fold through the end of the third quarter, driven by growing investor preference to take short-term views on underlyings rather than buying a bond or selling credit protection. A small group of sophisticated credit investors are also using the instruments for pure volatility trading, betting on changes in implied volatility of the iTraxx index.

Daniel Berman, credit products manger at JPMorgan in London, said his firm has traded USD25 billion in notional since January. "Credit options have definitely been the biggest news in the flow space this year," Berman said, adding he expects volumes to again swell in the fourth quarter. Traders at firms including The Royal Bank of Scotland, Barclays Capital and ABN AMRO have also reported a boom in trading volumes.

The majority of credit options are bets on the iTraxx or CDX indices, but the number of trades which reference single names is climbing, according to market players. High-yield U.S. names including autos and airlines are currently the most liquid.

  • 07 Oct 2005

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 30,363.50 109 7.56%
2 JPMorgan 27,423.07 94 6.82%
3 Goldman Sachs 27,365.68 53 6.81%
4 Barclays 25,009.79 63 6.22%
5 Deutsche Bank 22,679.02 69 5.64%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Mizuho 299.85 1 21.73%
1 ING 299.85 1 21.73%
1 Commerzbank Group 299.85 1 21.73%
1 BNP Paribas 299.85 1 21.73%
5 UBS 60.22 1 4.36%

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 22.59%
2 Credit Suisse 1,301.65 4 18.30%
3 UBS 970.80 3 13.65%
4 BNP Paribas 522.35 4 7.34%
5 SG Corporate & Investment Banking 444.17 3 6.24%