Mortgage Bank Enters Interest Rate Hedge

  • 28 Oct 2002
Email a colleague
Request a PDF

Hypo Tirol Bank, an Austrian mortgage bank, has entered two swaps on the back of a recent CHF200 million (USD132.61 million) bond offering. Kirch Mair, head of asset and liability management in the treasury group in Innsbruck, said the bank first executed a swap to convert the offering to a floating-rate liability, in which it receives the 3% coupon on the bond and pays LIBOR plus a spread. Then it entered a basis swap in which it receives LIBOR plus a spread and pays Euribor plus a spread. Mair declined to disclose the specific spreads.

The firm wanted to convert the bond offering to a synthetic floating-rate liability to eliminate long-term interest rate risk because its mortgage assets provide floating rate revenue, Mair explained. Bank von Ernst and Credit Suisse First Boston are the counterparties on the swaps. Bank von Ernst was the lead manager on the offering and CSFB also underwrote the deal. They were chosen to provide the swaps because they are relationship banks, according to Mair, adding the bank requires counterparties to be investment-grade.

  • 28 Oct 2002

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 329,208.56 1277 8.09%
2 JPMorgan 321,584.64 1392 7.90%
3 Bank of America Merrill Lynch 296,878.25 1014 7.29%
4 Barclays 249,463.73 926 6.13%
5 Goldman Sachs 218,838.41 733 5.38%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 BNP Paribas 46,136.68 182 7.00%
2 JPMorgan 44,545.29 93 6.76%
3 UniCredit 35,639.50 153 5.41%
4 Credit Agricole CIB 33,211.72 160 5.04%
5 SG Corporate & Investment Banking 32,419.80 126 4.92%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 13,755.50 61 8.94%
2 Goldman Sachs 13,469.15 66 8.76%
3 Citi 9,716.40 55 6.32%
4 Morgan Stanley 8,471.86 53 5.51%
5 UBS 8,248.12 34 5.36%