First-Time Investors Shun CDOs

Rising volatility is spooking first time buyers of synthetic collateralized debt obligations, according to fund managers.

  • 27 May 2005
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Rising volatility is spooking first time buyers of synthetic collateralized debt obligations, according to fund managers. A recent drop in correlation, coupled with rumors of heavy hedge fund losses on the back of the rating downgrades of General Motors Corp. and Ford Motor Co., is forcing greenhorns to rethink the risk exposure of CDO trades.

Dominic Powell, head of the investment solutions group at Henderson Global Investors in London, said, "People are changing their expectations and rewriting the risk involved." He added, "People are still focusing on hedge funds and their position in CDOs and CDS. Investors need better clarification in that area before moving forward."

Structured credit marketers say existing investors have confidence in the structure and there has been no downturn in the market. Mark Lauber, executive director of structured credit at Rabobank, said the investors are informed on market problems but continue to hold positive views of the trades. "From our point of view it's business as usual," he noted, adding, "We are trading for the long term and any short term dislocations could present opportunities."

  • 27 May 2005

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 239,928.76 921 8.16%
2 JPMorgan 222,471.63 995 7.57%
3 Bank of America Merrill Lynch 215,931.77 721 7.34%
4 Barclays 184,694.55 670 6.28%
5 Goldman Sachs 158,679.40 515 5.40%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
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1 JPMorgan 32,522.19 61 6.59%
2 BNP Paribas 32,284.10 130 6.54%
3 UniCredit 26,992.47 123 5.47%
4 SG Corporate & Investment Banking 26,569.73 97 5.38%
5 Credit Agricole CIB 23,807.36 111 4.82%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Goldman Sachs 10,167.68 46 8.82%
2 JPMorgan 9,894.90 42 8.58%
3 Citi 8,202.25 45 7.11%
4 UBS 6,098.17 23 5.29%
5 Credit Suisse 5,236.02 28 4.54%