Banks Enter Weather Derivatives Market

  • 07 Jan 2002
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Investment banks entering the weather derivatives market gave the nascent industry a seal of approval just before Enron, one of its pioneers, filed for bankruptcy. Among the firms to enter were Barclays Capital (DW, 1/15), Dresdner Kleinwort Wasserstein (DW, 5/7), Credit Suisse First Boston, Deutsche Bank (DW, 5/20) and Italy's IntesaBci (DW, 7/16).

The collapse of the Houston-based company is expected to be felt for months to come and may stifle innovation (DW, 12/23). "Enron as a whole really sets everything back a bit," said one broker. However, the Nordic division of the company did not file for bankruptcy and is looking for a buyer (DW, 11/21).

However, before Enron collapsed there was a steady stream of new products. These included Entergy-Koch Trading structuring the first wind derivatives and Enron setting up a precipitation index (DW, 11/30, 8/19). But, temperature continued to be the main yardstick for weather derivatives contracts, with roughly 95% of all contracts referenced to it.

Last year also saw the first EUR100 million (USD90.54 million) weather transaction (DW, 10/14). The deal was executed by ABN AMRO on behalf of a Dutch counterparty rumored to be hedging exposure to frost. Spreads on heating-degree day contracts across Europe widened as a result, for example spreads on Heathrow blow out by 10 hdds to 1,700/1,702.

  • 07 Jan 2002

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 345,651.05 1349 8.09%
2 JPMorgan 341,748.87 1469 8.00%
3 Bank of America Merrill Lynch 306,869.45 1064 7.18%
4 Barclays 258,170.48 974 6.04%
5 Goldman Sachs 227,691.73 773 5.33%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 BNP Paribas 48,305.28 204 6.53%
2 JPMorgan 46,311.15 105 6.26%
3 UniCredit 40,488.91 181 5.48%
4 SG Corporate & Investment Banking 38,348.83 146 5.19%
5 Credit Agricole CIB 37,171.96 185 5.03%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 14,514.87 63 9.19%
2 Goldman Sachs 13,469.15 66 8.53%
3 Citi 9,971.36 58 6.32%
4 Morgan Stanley 8,572.10 54 5.43%
5 UBS 8,414.70 37 5.33%