UBS Issues Volatility Certificates

UBS has issued one of the first volatility certificates, allowing smaller investors to take views on volatility through the over-the-counter market and diversify their portfolio.

  • 07 Mar 2004
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UBS has issued one of the first volatility certificates, allowing smaller investors to take views on volatility through the over-the-counter market and diversify their portfolio. The certificates, one on the Dow Jones Euro STOXX 50 and another on the Standard & Poor's 500 are effectively forward-starting straddles on the underlying, according to Claude Schmidt, equity structured products marketer in Zurich.

Volatility is generally inversely correlated to equity prices, which means the certificates can be used to add efficiency to a portfolio and as a means of diversification, said Schmidt.

The straddle premiums were 8.13% on the certificate with Euro STOXX as an underlying and 7.65% for Standard & Poor's.

  • 07 Mar 2004

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
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1 Citi 28,736.25 82 9.49%
2 JPMorgan 26,609.28 77 8.79%
3 Barclays 19,197.35 50 6.34%
4 HSBC 18,884.90 60 6.24%
5 BNP Paribas 18,849.94 38 6.23%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
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1 Bank of America Merrill Lynch 9,498.80 2 86.78%
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 %
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1 ING 220.22 2 15.39%
1 Bank of America Merrill Lynch 220.22 2 15.39%
1 ABN AMRO Bank 220.22 2 15.39%
4 Morgan Stanley 114.77 1 8.02%
4 BNP Paribas 114.77 1 8.02%