BNP Markets Novel Snowball Variation

BNP Paribas in London is marketing an innovative interest rate-linked investment product for clients who believe rates will rise.

  • 22 Oct 2004
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BNP Paribas in London is marketing an innovative interest rate-linked investment product for clients who believe rates will rise. The structure is similar to a snowball note because each coupon is linked to the value of previous coupons. A typical snowball product, however, pays out as rates fall, whereas the BNP Coral note will pay out if rates rise. The note also has a callable feature, which enables BNP to offer a high initial fixed coupon to the investor.

In an example of the structure, linked to three-month Euribor, the investor will receive a coupon for each fix the index is at or above the margins, after receiving a guaranteed 7.5% for the first two periods. Kara Lemont, a marketer at BNP in London, said, "The curve is steep for a reason, there are some people out there who think that rates will go up." This product offers these investors the chance to express that view, added Lemont.

  • 22 Oct 2004

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
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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%

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Rank Lead Manager Amount $m No of issues Share %
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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 %
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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%