European LCDS Contract To Offer Both Cancelable And Non Cancelable Options

Dealers in European loan-only credit default swaps appear set to agree on a contract that would allow for trades in both cancelable and non-cancelable forms.

  • 15 Nov 2006
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Dealers in European loan-only credit default swaps appear set to agree on a contract that would allow for trades in both cancelable and non-cancelable forms. Dealers met Wednesday and one participant said there are still a number of things under discussion and it's too early to comment on what the final form will be. But he did say it looks like the contract will trade in both forms; giving participants the option to choose whether they want cancelable or non-cancelable. At issue now is whether the contract should be broadened beyond the reference obligation for the number of deliverables and include all secured debt. A European dealer anticipates the contract will be finalized in January, at the earliest.

In a cancelable document, if the loan gets refinanced and goes away, the trade also goes away. In a non-cancelable document, if the loan goes away, the trade stays. The banks had initially been trading on a document that allowed for cancelability, but a number of banks wanted to develop a contract that more closely resembles the U.S. version that trades with non-cancelable language. The International Swaps and Derivatives Association had been working with banks to develop a European confirm that would include a non-cancelabe provision (CIN, 11/13).

Some U.S. dealers were concerned that there could be confusion if both options were given and trades were being done on different contracts.

  • 15 Nov 2006

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 417,761.51 1606 9.02%
2 JPMorgan 380,362.89 1737 8.21%
3 Bank of America Merrill Lynch 364,928.71 1322 7.88%
4 Goldman Sachs 269,252.76 932 5.82%
5 Barclays 267,252.43 1082 5.77%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 HSBC 45,449.36 196 6.56%
2 BNP Paribas 38,734.80 217 5.59%
3 Deutsche Bank 37,615.10 139 5.43%
4 JPMorgan 34,724.19 118 5.01%
5 Bank of America Merrill Lynch 33,835.53 112 4.88%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 22,475.46 105 8.65%
2 Morgan Stanley 19,057.00 101 7.34%
3 Citi 17,812.08 111 6.86%
4 UBS 17,693.89 71 6.81%
5 Goldman Sachs 17,333.10 99 6.67%