Dealers Warn Investors Off

A researcher and a banker warned investors to stay away from high-yield bonds, with the researcher going so far as to criticize some of his firm's recent deals.

  • 11 Mar 2005
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A researcher and a banker warned investors to stay away from high-yield bonds, with the researcher going so far as to criticize some of his firm's recent deals.

David Newman, co-head of European credit research at Citigroup in London, questioned whether the whole high-yield world had gone insane by describing how leverage continues to increase and covenants continue to weaken on new issues. For example, he noted two-Citigroup-led sales, for Culligan and iesy, each have seen covenant protection for investors weaken.

Leland Hart, executive director in leveraged capital markets at Lehman Brothers in London, told bond investors to run and hide. Given that valuations between bank debt and high-yield bonds are on top of one another on an asset-swapped basis, he said it makes more sense to invest in the senior part of the capital structure, namely in bank debt or warrant-less mezzanine securities.

  • 11 Mar 2005

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 59,389.63 191 8.32%
2 JPMorgan 58,294.01 209 8.16%
3 Barclays 49,613.60 160 6.95%
4 Bank of America Merrill Lynch 42,095.04 147 5.90%
5 Deutsche Bank 38,720.01 140 5.42%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Bank of America Merrill Lynch 6,045.16 4 18.58%
2 BNP Paribas 1,742.18 7 5.36%
3 Credit Agricole CIB 1,539.94 8 4.73%
4 MUFG 1,257.24 4 3.87%
5 SG Corporate & Investment Banking 1,165.08 6 3.58%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 UBS 998.25 3 13.45%
2 Citi 693.55 2 9.34%
3 Morgan Stanley 572.72 3 7.72%
4 Bank of America Merrill Lynch 509.34 3 6.86%
5 Jefferies LLC 409.89 4 5.52%