Illinois Manager Shies Away From Corporates

Joel Binder, chief investment strategist at Old Second Wealth Management, said the firm has not been buying a lot of corporates recently, but may look to them in the future.

  • 29 Sep 2006
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Joel Binder, chief investment strategist at Old Second Wealth Management, said the firm has not been buying a lot of corporates recently, but may look to them in the future. The firm has been looking more at municipal bonds and mortgage-backeds.

The firm has stayed away from corporates because spreads have been historically tight, Binder said. Also, he said that the market has increasingly seen issuers end up with private equity buyouts and the terms of indentures have generally been insufficient in terms of protecting the bond holder. "We just haven't [found] them all that compelling," he said.

However, Binder does anticipate the firm could look back to that space in the future. "I would suspect we will probably move back into the corporate bond market if we see...the economy slowing and the shorter end of the treasury curve comes down," he said. He cautioned, however, that in a slower economy, one has to be aware about yield spreads.

The firm has currently been buying premium bonds on the tax-exempt side; he said munis are attractive right now. He also said having a diversified portfolio of mortgage-backed assets could be good.

The Aurora, Ill.-based firm has just under $1 billion in assets under management, with about 64% in fixed income, but that ranges from institutional accounts to retirement benefits accounts, etc. He said the firm does not have one benchmark, it varies by account, but it does use the Lehman Brothers Aggregate Bond index.

  • 29 Sep 2006

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 304,500.91 1183 8.05%
2 JPMorgan 297,722.75 1300 7.87%
3 Bank of America Merrill Lynch 278,326.06 937 7.35%
4 Barclays 230,541.51 857 6.09%
5 Goldman Sachs 206,469.72 679 5.46%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 BNP Paribas 43,227.81 174 7.04%
2 JPMorgan 38,825.76 78 6.32%
3 Credit Agricole CIB 33,071.14 158 5.38%
4 UniCredit 32,366.25 145 5.27%
5 SG Corporate & Investment Banking 31,330.98 120 5.10%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 JPMorgan 13,024.03 55 8.90%
2 Goldman Sachs 12,162.67 59 8.31%
3 Citi 9,480.20 54 6.48%
4 Morgan Stanley 8,083.13 49 5.52%
5 UBS 7,976.88 32 5.45%