Corporate Derivatives Back On Track

Corporate derivatives desks are busier than normal for this time of year, following a dearth of business for the first six months of the year.

  • 30 Jul 2004
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Corporate derivatives desks are busier than normal for this time of year, following a dearth of business for the first six months of the year. Corporates are entering trades in spite of uncertainty over the adoption of international accounting standards that are due to come into play in January (DW, 5/9). Corporate activity has taken off in two main areas, say officials; financing strategies, such as issuing convertible bonds, and using derivatives to close out positions that are not strategically important.

Officials, however, could not pin-point precise reasons for the upturn. Alex Caramella, corporate derivatives banker at UBS in London, said, "I don't think the [market] conditions have changed dramatically from a month ago, but on the other hand we are seeing larger volumes of trades." One factor could be that continuing low equity volatility and slow stock market growth means corporates are looking to close out unnecessary positions, explained one market official. A recent example is the transaction last month in which DaimlerChrysler entered a collar trade with Deutsche Bank to lock in the current share price on its 2.7% stake in aerospace groupEADS.

 

  • 30 Jul 2004

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 29,036.25 83 9.38%
2 JPMorgan 26,957.68 80 8.71%
3 Barclays 19,404.68 52 6.27%
4 BNP Paribas 19,264.87 42 6.22%
5 HSBC 19,097.04 63 6.17%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Bank of America Merrill Lynch 9,498.80 2 86.56%
2 Swedbank 160.81 1 1.47%
2 Sumitomo Mitsui Financial Group 160.81 1 1.47%
2 SEB 160.81 1 1.47%
2 Nordea 160.81 1 1.47%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 ING 220.22 2 13.96%
1 Bank of America Merrill Lynch 220.22 2 13.96%
1 ABN AMRO Bank 220.22 2 13.96%
4 Barclays 129.04 1 8.18%
5 Morgan Stanley 114.77 1 7.28%